* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Ritvik Carvalho
LONDON, Nov 25 (Reuters) - World shares staged a cautious
rally on Monday as investors held out for some progress in
U.S.-China trade talks, while the dollar dipped after its latest
rally on the back of strong U.S. economic data.
The MSCI All-Country World Index .MIWD00000PUS , which
tracks shares across 47 countries, was up 0.2%.
European shares rose for the second straight session
following reports that Washington and Beijing were nearing a
trade agreement. The pan-European STOXX 600 index .STOXX was
up 0.7% at 0837 GMT, led by trade-sensitive miners. .EU
Britain's FTSE100 .FTSE index was up 0.7%, Germany's DAX
.GDAXI rose 0.5%, and France's CAC40 index .FCHI was up
0.6%.
A Chinese state-backed tabloid said on Monday China and the
United States were "very close" to an initial trade agreement,
adding to optimism from Friday, when the presidents of both the
countries reiterated their desire for a deal. China said on Sunday it would seek to improve protections
for intellectual property rights, including raising the upper
limits for compensation for rights infringements. "China being prepared to look at intellectual property is
obviously the catalyst for a nice move higher, or a return to
the highs earlier this month," said Michael Hewson, chief
markets analyst at CMC Markets in London.
Earlier in Asia, MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS bounced 0.7%, after losing
0.4% last week.
Japan's Nikkei .N225 firmed 0.7%, while Australian stocks
.AXJO rose 0.5% and Shanghai blue chips .CSI300 0.3%.
E-Mini futures for the S&P 500 ESc1 added 0.2%. .N
On Saturday, U.S. national security adviser Robert O'Brien
said an initial trade agreement with China is still possible by
the end of the year, though he warned Washington would not turn
a blind eye to what happens in Hong Kong. The comments add to worries that a Chinese crackdown on
anti-government protests in Hong Kong could further complicate
the talks.
"The fact that talks are still happening remains a
positive," said Robert Rennie, head of financial market strategy
at Westpac. "Markets are showing some signs of tiring of the
steady drip feed of upbeat comments from U.S. officials and no
signs of a final agreement looking likely."
He said seeks had passed since the "phase one" deal was
agreed in principle yet there was still no deal in place.
"Key for markets will thus be whether the Dec. 15 tariffs
covering approximately $156 billion of largely technology
imports are postponed and whether a deal can be signed ahead of
that date, with press suggesting that these tariffs will be
delayed to give negotiators more time."
'LEAST DIRTY'
In currency markets, the dollar dipped after its rally on
Friday when U.S. manufacturing surveys beat forecasts, just as
European Union numbers disappointed. Against a basket of currencies, it last traded down 0.05% at
98.226 .DXY , after gaining 0.3% last week.
"U.S. economic data outperformed, highlighting again the
resilience of the economy and that while global growth has
slowed, it remains the least dirty t-shirt in the laundry
basket," said Tapas Strickland, a director of economics and
markets at National Australia Bank.
"For the EU data, the important takeaway was the ongoing
decline in the manufacturing sector is now spreading to the
larger services sector, a worrying sign for the global economy."
European Central Bank President Christine Lagarde on Friday
called on euro zone governments to strengthen domestic demand.
Federal Reserve Chair Jerome Powell speaks later on Monday
and is expected to underline the steady outlook for rates given
the better economic figures.
The euro was flat $1.1024 EUR= on Monday, having breached
chart support at $1.1040, while the dollar edged up to 108.87
yen JPY= .
Spot gold was 0.3% lower at $1,457.44 per ounce XAU= .
GOL/
Oil prices rose. O/R
Brent crude LCOc1 futures firmed 0.19% to $63.51, while
U.S. crude CLc1 rose 0.1% to $57.83 a barrel.