Global shares rose on Monday as worries over a trade war between the
United States and other major economies took a back seat, with investors
focusing on an easing of political risks in Europe and strong U.S. jobs
data.
The MSCI world equity index, which tracks shares in 47 countries,
climbed 0.4 percent, while European stocks continued on their road to
recovery with a 0.5 percent rise by 1107 GMT as tensions calmed in Italy
and Spain.
Following a week in which Italian stocks hit their lowest since July, Italy’s anti-establishment parties formed a coalition government on Friday to end three months of political deadlock.
Italian bond yields fell. They soared last week on fears a snap election would be called that might effectively become a referendum on euro membership.
The spread on Spanish bond yields over benchmark German Bunds also narrowed after a new prime minister was sworn in Madrid, though Socialist Pedro Sanchez’s minority administration faces a tough baptism from a revived independence drive in Catalonia.
The euro traded at $1.1723, well clear of Tuesday’s 10-month low of $1.1506.
While the risk of political crisis receded in Europe, concerns over a possible global trade war rumbled on in the background.
Finance ministers of the closest U.S. allies vented their anger on Saturday over Washington’s imposition of metal import tariffs, setting the tone for a heated G7 summit next week in Quebec.
Following a week in which Italian stocks hit their lowest since July, Italy’s anti-establishment parties formed a coalition government on Friday to end three months of political deadlock.
Italian bond yields fell. They soared last week on fears a snap election would be called that might effectively become a referendum on euro membership.
The spread on Spanish bond yields over benchmark German Bunds also narrowed after a new prime minister was sworn in Madrid, though Socialist Pedro Sanchez’s minority administration faces a tough baptism from a revived independence drive in Catalonia.
The euro traded at $1.1723, well clear of Tuesday’s 10-month low of $1.1506.
While the risk of political crisis receded in Europe, concerns over a possible global trade war rumbled on in the background.
Finance ministers of the closest U.S. allies vented their anger on Saturday over Washington’s imposition of metal import tariffs, setting the tone for a heated G7 summit next week in Quebec.
No comments:
Post a Comment