(New throughout, updates and adds oil, gold settlement prices)
* British PM May announces resignation, pound bounce fades
* Trump: 'Dangerous' Huawei could be in China trade deal
* Dollar off 2-year highs; oil rebounds
* GRAPHIC-World FX rates in 2019:
By Herbert Lash
NEW YORK, May 24 (Reuters) - World equity markets rebounded on
Friday from the previous day's sharp fall, boosted after U.S.
President Donald Trump said complaints against China's Huawei
Technologies might be resolved within the framework of a Sino-U.S.
Tensions remained high, with China accusing U.S. Secretary of
State Mike Pompeo of fabricating rumors after he said Huawei's
chief executive was lying about the telecom network gear maker's ties
to the Chinese government.
On Thursday, Trump said a trade deal could resolve U.S.
complaints against Huawei, but also called the company "very dangerous."
"Today's action is mostly based on sentiment because the
overall market is trading at a full valuation," Rahul Shah, chief
executive of Ideal Asset Management in New York, said of equities.
Investments remain highly susceptible to headline risk, Shah said,
though investors took in stride a U.S. Commerce Department report that
said new orders for domestic capital goods fell more than expected in
The report also showed March orders were not as strong as
previously thought, and shipments were weak over the last two months,
further evidence that manufacturing and the U.S. economy were slowing.
MSCI's gauge of stock performance across 47 countries
gained 0.47%, while the pan-European STOXX 600 index closed up
Investors appeared unfazed by British Prime Minister Theresa May's
resignation as Conservative party leader after failing in a final
attempt to win parliamentary support for her deal to exit the European
On Wall Street, the Dow Jones Industrial Average rose 117.75
points, or 0.46%, to 25,608.22. The S&P 500 gained 8.1 points,
or 0.29%, to 2,830.34 and the Nasdaq Composite
added 22.63 points, or 0.3%, to 7,650.91.
The dollar edged off two-year highs set on Thursday, pressured as
the weak U.S. manufacturing activity data sparked worries the trade
conflict with China may hurt the world's largest economy.
Against a basket of six major currencies, the dollar was down
0.28% at 97.586, well off the two-year high of 98.371 the previous session.
The euro rose 0.23% to $1.1206 while the Japanese yen
strengthened 0.26% versus the greenback at 109.31.
U.S. Treasury yields rose, as Trump's remarks about Huawei
encouraged investors to book profits a day after a surge in government
bond prices and ahead of a long U.S. holiday weekend.
Benchmark 10-year U.S. Treasury notes fell 8/32 in price to
push yields up to 2.3237%.
U.S. markets will close on Monday for Memorial Day, a federal holiday.
May's resignation briefly sent sterling fluctuating wildly. It
rose nearly half a percent against the dollar after the announcement
and traded near those gains at $1.2716 . Against the euro, sterling
snapped a 14-day losing streak.
Oil prices climbed 1 percent but still posted their biggest weekly
drop of the year, pressured by rising inventories and worries about
the global economy.
U.S. crude inventories rose to their highest since July 2017,
suggesting ample supplies in the world's top consumer
. Brent crude , the global benchmark, rose 93 cents to settle at
$68.69 a barrel. For the week, it fell almost 5%.
U.S. West Texas Intermediate crude traded up 72 cents to settle
at $58.63. For the week WTI fell 6.5 percent.
Gold steadied, under pressure from the equities rebound but
supported by a weaker dollar and growing expectations for a
U.S. gold futures for June settled down 0.1% at $1,283.60 an
GRAPHIC-MSCI World Asia as of May 24
(Reporting by Herbert Lash; additional reporting by Karin Strohecker,
Dhara Ranasinghe, Tomo Uetake and Noah Sin; editing by John
Stonestreet and Dan Grebler and David Gregorio)
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