In This Article:
(Corrects date of talks reported by the Wall Street Journal in paragraph 4, to Aug 22 and 23 (from Aug 21 and 22))
* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh
* Stocks rise in anticipation of US-China trade talks
* Dollar index up 0.2 pct
* Turkish lira under renewed pressure after ratings downgrades
* Oil prices stabilize, gold gains
By Ritvik Carvalho
LONDON, Aug 20 (Reuters) - Global stocks rose on Monday amid optimism over planned trade talks between the United States and China, while Turkey's lira fell after its credit ratings were downgraded and shots were fired outside the U.S. embassy in Ankara.
European shares opened higher, as investors hoped the U.S. and China might find a compromise to resolve their trade dispute. The pan-European STOXX was up 0.7 percent, with most markets across the continent gaining.
The gains in Europe helped lift the MSCI All-Country World index, which tracks shares in 47 countries, by 0.3 percent. The gauge has nearly recouped the losses from last week caused by the plunge in Turkey's currency.
China and the United States will hold lower-level trade talks this month, the two governments said last week.
The Wall Street Journal reported that the talks would take place on Aug. 22 and 23. That's just before new U.S. tariffs on $16 billion of Chinese goods take effect, along with retaliatory tariffs from Beijing on an equal amount of U.S. goods .
Asian stock markets seemed to welcome the news, with MSCI's broadest index of Asia-Pacific shares outside Japan climbing nearly 1 percent. Hong Kong's Hang Seng index added 1.4 percent.
Shanghai blue chips rose over 1 percent and Japan's Nikkei ended 0.3 percent lower. EMini futures for the S&P500 were up 0.2 percent.
Analysts gave a more lukewarm reception.
"Trade talks between the US and China are to be resumed this month, and traders are cautiously optimistic, but just because the meeting has been lined up doesn't mean anything will come of it," said David Madden, chief markets analyst at CMC Markets in London.
"Some traders view the (recent) weakness in the Chinese stock market and currency as a sign that Beijing will be more accommodating when it comes to negotiations."
Turkey's lira fell nearly 1.8 percent, beyond 6 lira per dollar.
Turkish sovereign dollar bonds fell across the curve on Monday and the cost of insuring exposure to Turkish debt rose after Moody's and S&P Global lowered their sovereign credit ratings on Friday .
In addition, shots were fired at the U.S. Embassy in Ankara, compounding tensions between Turkey and the United States as a dispute over Turkey's detention of an American pastor simmered .