Written by Sinéad Carew and Nell Mackenzie
NEW YORK/LONDON (Reuters) - MSCI's global stock index rose little on Friday, with the dollar failing as a U.S.-UK trade deal, which is full of guard-based optimism for U.S. tariff negotiations with China and other countries.
U.S. President Donald Trump opposes the idea that the UK deal could be a template for other trade negotiations. Traders met in Geneva, Switzerland between the U.S. Treasury Secretary and the chief trade negotiator of the Chinese Economic Tsar.
India has proposed to cut its tariff gap with the U.S. to nearly 13% now in exchange for exemption from “current and potential” tariff hikes, Reuters reported.
Trump said setting an 80% tariff on Chinese goods "seems to be correct." This is the first alternative to his proposal to levy 145% tax.
Matt Stucky, chief portfolio manager of Northwestern Mutual Wealth Management stock, said any cuts to the tariffs in the United States are gradually becoming positive.
"With Geneva meeting this weekend, there is no doubt that there will be a lot of profits given the strength we have," said Michael James, managing director of Rosenblatt Securities.
"In the last month, we were all used to the negative and positive effects of any social media headlines from the White House. While the past few weeks will certainly be more pleasant as the market trends are higher ... there is still quite a bit of uncertainty."
The most extensive index of MSCI, the world's most extensive stocks, rose 0.95 points, or 0.11%, to 846.80, with a weekly decline of about 0.3%.
Earlier in the day, the Pan-European STOXX 600 index rose 0.44%, while Germany's DAX stock index ended up hitting a record high score of 0.63%.
On Wall Street, the Dow Jones Industrial Average fell 119.07 points, or 0.29%, to 41,249.38, the S&P 500 fell 4.03 points, or 0.07%, to 5,659.91, and the Nasdaq Comprehensive Rose Rose 0.78 points, to 17,928.92.
In the mid-week, the S&P 500 fell 0.5%, the Dow lost 0.2%, and Nasdaq stock fell 0.3%.
On currency, the dollar fell on the day, but earned once a week on major currencies, including the Swiss franc, the yen and the euro on the upcoming US-China conversation.
The U.S. dollar index measures green green, a basket of currencies including the yen and the euro
Less than 0.28% to 100.37.
The euro rose 0.25% to $1.1255, while the dollar weakened by 0.42% to 145.3 for the yen.
Sterling strengthened 0.45% to $1.3305, while for the Swiss Franc, the dollar weakened 0.12% to 0.831.
Among cryptocurrencies, Bitcoin has received its fourth-day earnings for the fourth straight day, hitting its highest level since the month after Thursday’s advance, the largest in a month.
Bitcoin rose 0.58% to $103,224.04 on Friday. Ethereum rose 6.71% to $2,331.16.
The yields of the U.S. Treasury have barely changed, less than usual, and sentiment remains uncertain as investors look forward to negotiations between the U.S. and China.
The benchmark U.S. 10-year yield rose to 4.386% from 4.373% late Thursday. Bond yields rose 1.3 basis points to 4.8444% over the past 30 years.
The 2-year bill yield usually moves gradually with Fed's interest rate policy expectations, down 0.8 basis points from 3.895% late Thursday to 3.887%.
Mike Venuto, co-founder and chief investment officer of Tidal Financial Group in New York, is not optimistic about the upcoming China talks.
"It will cost more than we want. I expect further uncertainty because even if you have a good partner with a good intention to work, a trade deal will take a year to exercise," Venuto said.
"What we've seen so far is symbolic. There's a lot of wood to cut. People are just looking for any good news that is more or less sustainable."
Oil futures rose more than $1 that day since mid-April and earned their first gains as investors are expected to hold trade talks between senior U.S. and Chinese officials, the two biggest consumers of the commodity.
U.S. crude rose 1.85% or $1.11 at $61.02 a barrel, while Brent rose to $63.91 a barrel, up 1.7% or $1.07 a day.
As the dollar weakens, gold prices rise, and investors digest Trump's rhetoric before the weekend talks.
Spotted gold rose 0.67% to $3,327.53. U.S. gold futures rose 0.81% per ounce to $3,323.30.
(Reports by Sinéad Carew, Gertrude Chavez-Dreyfuss in New York, Nell Mackenzie in London and Kevin Buckland in Tokyo; Other reports by Dhara Ranasinghe; Editors by Toby Chopra, David Evans and David Gregorio;