NEW YORK — The dollar edged higher while a gauge of global equity markets rose on Monday, lifted by optimism over the planned signing this week of a U.S.-China trade deal and expectations the start of the U.S. corporate earnings season will not disappoint.
Gold prices fell almost 1% ahead of the signing at the White House on Wednesday of the Phase 1 trade deal and as a de-escalation in U.S.-Iran tensions in the Middle East reduced bullion’s safe-haven appeal.
U.S. and euro zone government bond yields rose as the trade deal marks a major step in ending a dispute that crimped global growth and boosted demand for safer assets such as bonds, gold and safe-haven currencies like the Japanese yen and Swiss franc.
MSCI’s gauge of stocks across the globe gained 0.28% while emerging market stocks rose 0.83%.
Middle East tensions rose after the United States killed of a top Iranian general this month and knocked global stocks off a record high. But markets have rebounded with no further escalation in the conflict and the focus shifting to the trade deal.
Wall Street also was higher but European shares slid as investors await the start of earnings season, with large U.S. banks, including Citigroup Inc, JPMorgan Chase & Co. and Wells Fargo & Co. due to report on Tuesday.
“It’s put up or shut up time,” said Joe Saluzzi, said co-manager of trading at Themis Trading in Chatham, New Jersey. “We’ve priced in a big rally, we expect growth and now it’s time to see it. If we have a good earnings season then it will be great.”
U.S. stocks traded just below fresh records set last week.
The Dow Jones Industrial Average rose 55.01 points, or 0.19%, to 28,878.78, the S&P 500 gained 11.82 points, or 0.36%,