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Mexican peso, Canadian dollar slide on threat of 25%
tariffs
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Bitcoin loses ground, gold up slightly
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Oil prices settle down after Israel-Lebanon ceasefire deal
(Updated prices in late afternOon ET)
By Sinéad Carew and Amanda Cooper
NEW YORK/LONDON, Nov 26 (Reuters) - The U.S dollar rose
against some currencies after U.S. President-elect Donald Trump
pledged to impose new tariffs on imports from Canada, Mexico and
China, while MSCI's global equity index was higher after the
release of the Federal Reserve's latest meeting minutes.
The minutes from the meeting earlier this month showed
officials divided over how much farther they may need to cut
interest rates, but in agreement about avoiding concrete
guidance.
"With the stock market, no surprises is good news. The
market likes certainty above anything else," said Burns
McKinney, portfolio manager at NFJ Investment Group in Dallas.
"Overall, Fed policymakers are still supportive of a careful
approach. ... They didn't say anything hawkish."
On Wall Street, at 3:11 p.m. (2011 GMT) the Dow Jones
Industrial Average rose 82.93 points, or 0.19%, to
44,819.50; the S&P 500 rose 26.92 points, or 0.45%, to
6,014.29; and the Nasdaq Composite rose 86.47 points, or
0.45%, to 19,141.31.
By late afternoon MSCI's gauge of stock markets across the
globe had also turned higher and was up 0.71
point, or 0.08%, to 858.46. Europe's STOXX 600 index
earlier closed down 0.57%.
While it was below its session high the dollar was still up
against the Mexican peso and Canadian dollar in
afternoon trading.
Trump, citing concerns over illegal immigration and illicit
drug trading, had said earlier that he would put a 25% tariff on
products from Mexico and Canada, and an additional 10% tariff on
goods from China. He had previously threatened to slap tariffs
in excess of 60% on Chinese imports.
But investors toned down their initial reactions to the
tariff threat and appeared to view it as a "negotiation tool,"
according to McKinney.
However, U.S. Treasury yields rose on Tuesday, as Monday's
sharp bond rally lost momentum as the tariff announcement undid
some of the investor optimism from Trump's selection late last
week of Scott Bessent as Treasury secretary.
The yield on benchmark U.S. 10-year notes rose
4.3 basis points to 4.306%, from 4.263% late on Monday while the
30-year bond yield rose 3.6 basis points to 4.4828%.
The 2-year note yield, which typically moves in
step with interest rate expectations, rose 0.6 basis point to
4.258%, from 4.252% late on Monday.
In currencies, the Mexican peso weakened 1.69%
versus the dollar and the Canadian dollar weakened 0.55%
versus the greenback.
While the euro was down 0.18% against the dollar at
$1.0475, against the Japanese yen, the dollar weakened
0.73% to 153.08.
Oil prices settled lower, slightly extending Monday's losses
in choppy trade after news of an agreement for a ceasefire
between Israel and Lebanon, reducing oil's risk premium.
U.S. crude settled down 0.25% at $68.77 a barrel and
Brent ended at $72.81 per barrel, down 0.27% on the day.
Bitcoin fell 2.06% to $91,758.00, adding to Monday's
losses after last week hitting a record high at $99,830. The
token had benefited from speculation of an easier regulatory
environment for cryptocurrencies under Trump.
In precious metals, gold prices were caught in a tug-of-war,
dipping to a week low as safe-haven demand softened with news of
the ceasefire, while concern over Ukraine and Trump's tariff
plans added some support.
Spot gold rose 0.18% to $2,629.86 an ounce while U.S.
gold futures rose 0.34% to $2,625.60 an ounce.