Morning Bid: Trade and inflation relief

By Mike Dolan

LONDON (Reuters) - What matters successful U.S. and planetary markets today

By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets

Wall Street stocks look acceptable to prolong this week's gains, fueled by commercialized de-escalation hopes and brushed April ostentation readings. But investors volition nary uncertainty beryllium conscious of the still-febrile authorities of the system and policymaking.

I'll dive into each the details beneath and beryllium backmost with much columns and speechmaking suggestions adjacent week.

Today's Market Minute

* Russian and Ukrainian negotiators met successful Istanbul connected Friday for their archetypal bid talks successful much than 3 years arsenic some sides travel nether unit from U.S. President Donald Trump to extremity Europe's deadliest struggle since World War Two.

* Trump connected Thursday announced deals totaling much than $200 cardinal betwixt the United States and the United Arab Emirates, including a $14.5 cardinal committedness betwixt Boeing, GE Aerospace and Etihad Airways.

* India is considering plans to dramatically summation the h2o it draws from a large stream that feeds Pakistani farms downstream, arsenic portion of retaliatory enactment for a deadly April onslaught connected tourists that New Delhi blames connected Islamabad.

* The steady, gradual diminution successful U.S. ostentation has precocious travel with an unwelcome broadside effect: rising 'real' borrowing costs. With the Federal Reserve's authoritative argumentation complaint connected clasp and the benchmark 10-year Treasury output edging higher, inflation-adjusted involvement rates are rising, efficaciously tightening monetary argumentation and fiscal conditions. Read Reuters columnist Jamie McGeever’s latest analysis.

* China has focused connected expanding its export markets crossed the ‘Global South’, peculiarly successful Southeast Asia. But this is creating a caller ‘China shock’ arsenic the region's manufacturers conflict to compete. Check retired the file from Manishi Raychaudhuri, the laminitis of Emmer Capital Partners Ltd.

Trade and ostentation relief

The S&P 500 is backmost successful affirmative territory for the twelvemonth for the archetypal clip since February, and futures constituent to humble further gains connected Friday. The VIX "fear index" of equity volatility has fallen to its lowest constituent since March, arsenic has the Treasury marketplace equivalent.

U.S. tech and craft firms got a boost this week pursuing the announcement of caller orders from Middle East countries that Trump has visited this past week.

Meanwhile, a astonishment driblet successful April U.S. shaper prices helped Treasuries rally connected Thursday. Ten-year Treasury yields tumbled backmost to arsenic debased arsenic 4.40% connected Friday, down 15 ground points from Thursday's intraday peak. The dollar was connected the backmost ft arsenic a result.