U.S. and China roll out tit-for-tat port fees
IMF upwardly revises global economic outlook
Gold sets record above $4,100 per ounce
(Updates to U.S. market close)
By Stephen Culp
NEW YORK, Oct 14 (Reuters) -
Wall Street closed mixed on Tuesday and gold touched a record high as investors weighed upbeat economic sentiment from the
International Monetary Fund
and Federal Reserve Chair Jerome Powell against revived U.S.-China trade tensions.
Stocks lost some momentum late in the session after U.S. President
Donald Trump
posted on social media that he was considering
ending some trade ties
with
China
.
The Dow reversed an early selloff to nab modest gains, while crude prices fell and benchmark U.S. Treasury yields eased.
The S&amp;P 500 and the Nasdaq finished the session in negative territory. Powell said in a speech on Tuesday that the overall U.S. economy “may be on a somewhat firmer trajectory than expected,” while also cautioning that “there is no risk-free path for policy as we navigate the tension between our employment and inflation goals.”
That echoed an IMF report which raised its global growth outlook as tariff shocks and financial conditions have proven more benign than expected. But the IMF warned that the trade war between the world’s two largest economies could significantly slow output.
“What we have here is a market that has one ear constantly listening to the trade war rhetoric and then we have the other ear, which is in tune to the fundamentals of the stock market,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. The U.S. and China began charging tit-for-tat port fees on Tuesday. Bilateral trade tensions, which have rattled world markets this year, flared up late last week after China tightened controls on its rare earth exports. Trump retaliated by threatening to hike tariffs on Chinese imports into the triple digits.
BANK EARNINGS KICK OFF EARNINGS SEASON Upbeat quarterly results from high-profile financial firms including JPMorgan Chase (JPM.N) , Goldman Sachs (GS.N) , Citigroup (C.N) and Wells Fargo (WFC.N) kicked off third-quarter earnings season.
“If the banks are a guide, it will probably be a good earnings season,” Cardillo added. “That’s another supportive factor because to a certain degree, it validates the recent market highs.” The Dow Jones Industrial Average (.DJI) rose 202.88 points, or 0.44%, to 46,270.46, the S&amp;P 500 (.SPX) fell 10.41 points, or 0.16%, to 6,644.31 and the Nasdaq Composite (.IXIC) fell 172.91 points, or 0.76%, to 22,521.70.
European stocks closed lower as renewed U.S.-China trade tensions soured market sentiment, as investors eyed developments in France, where the prime minister appeared set to hold off on a key pension overhaul. MSCI’s gauge of stocks across the globe (.MIWD00000PUS)
fell 2.45 points, or 0.25%, to 978.64. The pan-European STOXX 600 (.STOXX) index fell 0.37%, while Europe’s broad FTSEurofirst 300 index (.FTEU3) fell 7.41 points, or 0.33%.
Treasury yields declined but were off earlier lows, following Powell’s speech and the IMF’s revised growth outlook. The yield on benchmark U.S. 10-year notes (US10YT=RR) fell 2.3 basis points to 4.028%, from 4.051% late on Friday. The 30-year bond (US30YT=RR) yield fell 1.1 basis points to 4.6234% from 4.634% late on Friday.
Oil prices dipped on trade war jitters and a report from the International Energy Agency which raised the prospect of increased supplies and dampening demand.
U.S. crude (CLc1) fell 1.33% to settle at $58.70 per barrel, while Brent (LCOc1) settled at $62.39 per barrel, down 1.47% on the day.
The dollar eased while the Swiss franc and Japanese yen firmed due to heightened trade-driven risk. The dollar index (=USD) , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.26% to 99.04, with the euro (EUR=) up 0.31% at $1.1604. Against the Japanese yen (JPY=) , the dollar weakened 0.37% to 151.71.
Gold broke past $4,100, boosted by safe-haven demand arising from the latest salvo in the Washington-Beijing trade spat. Spot gold (XAU=) rose 0.75% to $4,140.97 an ounce. U.S. gold futures (GCc1) rose 0.77% to $4,140.20 an ounce.
World FX rates YTD here World stocks YTD
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U.S. stocks closed mixed amid renewed U.S.-China trade tensions, with the Dow gaining 0.44% while the S&P 500 and Nasdaq fell. Gold prices surged to a record high above $4,100 per ounce, driven by safe-haven demand. The IMF revised its global economic outlook upward, but warned that trade conflicts could hinder growth. Bank earnings reports from major firms indicated a potentially strong earnings season. Treasury yields declined following comments from Federal Reserve Chair Jerome Powell, who noted a firmer economic trajectory but cautioned about policy risks.

- Wall Street closed mixed as gold reached a record high above $4,100 per ounce amid renewed U.S.-China trade tensions and positive economic sentiment from the IMF.  
- The U.S. and China implemented tit-for-tat port fees, escalating trade conflicts, while the IMF revised its global growth outlook upward, despite warnings about potential slowdowns from the trade war.  
- Major U.S. banks reported strong earnings, suggesting a positive earnings season, while European stocks declined due to the trade tensions affecting market sentiment.

GLOBAL MARKETS-US stocks end mixed, gold jumps amid upbeat IMF forecast, trade tensions