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U.S. stocks closed mostly lower on Tuesday, 11 December 2018 in a session that saw the key indexes weave in and out of positive territory as investors weighed mounting political tension in the nation's capital against renewed optimism over U.S.-China trade talks. A contentious meeting between President Donald Trump and Democratic leaders Chuck Schumer and Nancy Pelosi over border security, with Trump threatening to shut down government, battered already fragile sentiment.

The Dow Jones Industrial Average shed 53.02 points, or 0.2%, to 24,370.24 while the S&P 500 index slipped 0.94 point to 2,636.78 and the Nasdaq Composite Index edged up 11.31 points, or 0.2%, to 7,031.83.

Stocks had charged higher at the opening bell after the U.S. and China launched formal trade talks with a phone call. The initial conversation included Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He, where they discussed changes to fundamental Chinese economic policies.

Among stocks under focus, Alphabet rose 0.8% as its Chief Executive Officer Sundar Pichai was grilled on Capitol Hill over the search giant's practices and its alleged political bias. Apple shares fell 0.8% amid lingering concerns about the company's business model and a series of setbacks in China, a key market.

The ICE U.S. Dollar Index, a measure of the U.S. currency against a basket of six major rivals, edged up by 0.2%. The index also rose on Monday. Gold priced in dollars often trades inversely with the dollar, as moves in the U.S. unit can influence the attractiveness of those commodities to holders of other currencies.

On Tuesday, global currencies were also driven by news on the trade front. The U.S. and China have kicked off a new round of trade talks. That helped to lift some risk-sensitive currencies against the U.S. dollar.

Tuesday's economic data included the Producer Price Index for November and the NFIB Small Business Optimism Index for November. The Producer Price Index for final demand increased 0.1% month-over-month in November (consensus 0.0%) while the index for final demand, excluding food and energy, increased 0.3% (consensus +0.1%). The monthly reading left the index for final demand up 2.5% year-over-year, versus 2.9% in October, and the index for final demand, excluding food and energy, up 2.7%, versus 2.6% in October. The key takeaway from the report is that it didn't inflame inflation concerns to an alarming degree, like the October report did.

Separately, the NFIB Small Business Optimism Index for November decreased to 104.8 from the prior reading of 107.4 in October.

Bullion prices ended mixed on Tuesday, 11 December 2018 at Comex. Gold prices gave up an earlier climb to finish a bit lower on Tuesday, weighed down by a second straight session of gains for the U.S. dollar. Expectations for a slowdown in the pace of future rate increases by the U.S. Federal Reserve, however, helped cap losses for the metal. Silver rose.

Gold for February on Comex fell by $2.20, or 0.2%, to settle at $1,247.20 an ounce, down from an earlier high above $1,255. March silver rose 2.3 cents, or 0.2%, to $14.628 an ounce, recouping some of its 0.6% loss from Monday.

Oil futures edged higher on Tuesday, 11 December 2018 in the wake of a short-term disruption in Libyan output, but settled off the session's high on the back of uncertainty surrounding compliance with an oil-producer agreement to cut output, as well as concerns over a potential slowdown in energy demand. Meanwhile, in a report issued on Tuesday, the Energy Information Administration reduced its oil-price forecasts for this year and next, following the recent price declines that came ahead of Friday's decision by the Organization of the Petroleum Exporting Countries and some nonmember allies to cut production starting in January.

West Texas Intermediate crude for January delivery tacked on 65 cents, or 1.3%, to settle at $51.65 a barrel on the New York Mercantile Exchange, after trading as high as $52.43. It lost 3.1% on Monday to settle at $51.

Global benchmark February Brent crude edged up by 23 cents, or 0.4%, at $60.20 a barrel on ICE Futures Europe after finishing Monday at $59.97, also the lowest in just over a week.

Looking ahead, investors will receive the Consumer Price Index for November, the weekly MBA Mortgage Applications Index, and the Treasury Budget for November on Wednesday.

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