* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* China wants more talks before signing initial trade deal -
BBG
* China trade data add to signs of weakness in economy
* Asian stocks gain, European shares fall
* Wall Street futures down 0.4%
By Ritvik Carvalho
LONDON, Oct 14 (Reuters) - A global index of stock markets
dipped on Monday as a report that China wants more talks before
signing a "Phase One" trade deal with the United States tempered
an initial burst of optimism that followed signs of progress
last week.
Stock markets in Asia cheered U.S. President Donald Trump's
outlining the first phase of an agreement to end a trade war
with China and suspending a threatened tariff hike.
But data showing a further contraction in Chinese imports
and exports in September and a Bloomberg report
that China wants further talks with the U.S. before signing
Trump's Phase One deal hit risk sentiment in Europe.
The pan-European STOXX 600 index was down nearly 1%
by midday in London. Germany's DAX, dominated by
companies exposed to China, slipped 0.7%. All European country
indexes were in the red.
MSCI's All-Country World Index, which tracks
shares across 47 countries, was down 0.1% on the day.
The emerging trade deal, covering agriculture, currency and
some aspects of intellectual-property protection, would
represent the biggest step by the two countries in 15 months.
But investors advised caution.
"While a positive development, we are not absolutely certain
that this marks the start of a clear de-escalation of the trade
dispute," said Mark Haefele, chief investment officer at UBS
Global Wealth Management. A number of issues were unresolved or
unclear, in his view.
"A delay to the scheduled December tariffs was not
announced, although that's likely if a deal is reached, and the
state of provisions on intellectual property, forced technology
transfer, and Chinese state subsidies, the most difficult
aspects of the negotiations, are still unclear."
Liquidity was also lacking with Japan off and a partial
market holiday in the United States for Columbus Day.
Australia's main index gained 0.54% and South Korea
rose 1.11%. Shanghai blue chips added 1%.
E-Mini futures for the S&P 500 were down 0.2% after
rising on Friday.
The drag from the trade war was a major reason Singapore's
central bank eased monetary policy on Monday for the first time
in three years. Data showed the city-state's economy had only
narrowly dodged recession.
BIG WEEK FOR BREXIT
The progress on trade was still enough to hit safe-haven bonds.
Yields on U.S. 10-year Treasury notes rose to 1.7530%
.
The yield curve also steepened as short-term rates were held
down by news the Federal Reserve would start buying about $60
billion per month in Treasury bills to ensure "ample reserves"
in the banking system.
The fading rally in risk assets as European markets opened
saw the Japanese yen regain ground against the dollar. The
currency was 0.3% higher to the dollar at 108.03.
The dollar gained 0.15% against a basket of
currencies.
Sterling fell over half a percent to $1.2550,
retreating from a 15-week high of $1.2708 on Friday on optimism
Britain could reach a deal on Brexit with the European Union.
A Brexit deal was hanging in the balance on Monday after
diplomats indicated the EU wanted more concessions from Prime
Minister Boris Johnson and that a full agreement was unlikely
this week.
Spot gold gained 0.4%, last trading at $1,494.68 per ounce
.
Oil prices fell more than 2%. Brent crude
futures fell 2.23% to $59.16 a barrel. U.S. crude lost
2.23% to $53.48 a barrel.
(Reporting by Ritvik Carvalho, editing by Larry King)