World stocks enjoyed a strong bounce on Friday as a recovery in Asian
markets spread to European shares after a turbulent week of selling as
investors’ fears of higher barriers to trade came closer to becoming
reality.
MSCI’s index of world stocks rose 0.5 percent by 0800 GMT, its strongest gain in three weeks, but its second quarter was still set to be in the red as investors priced in U.S. tariffs that are set to be implemented next week.
The U.S. administration is due to activate tariffs on Chinese goods worth $34 billion on July 6, which is expected to prompt a tit-for-tat response from Beijing.
European stocks rallied strongly, with the pan-European STOXX 600 up 1.2 percent and Germany’s trade-sensitive DAX up 1.5 percent.
But trade wars have already mauled assets from the Chinese yuan to European autos stocks, and wiped $1.75 trillion off world stocks’ market capitalization since June 12.
The euro jumped after leaders at an EU summit reached an agreement on migration, rising 0.5 percent to $1.1622 at 0800 GMT.
MSCI’s index of world stocks rose 0.5 percent by 0800 GMT, its strongest gain in three weeks, but its second quarter was still set to be in the red as investors priced in U.S. tariffs that are set to be implemented next week.
The U.S. administration is due to activate tariffs on Chinese goods worth $34 billion on July 6, which is expected to prompt a tit-for-tat response from Beijing.
European stocks rallied strongly, with the pan-European STOXX 600 up 1.2 percent and Germany’s trade-sensitive DAX up 1.5 percent.
But trade wars have already mauled assets from the Chinese yuan to European autos stocks, and wiped $1.75 trillion off world stocks’ market capitalization since June 12.
The euro jumped after leaders at an EU summit reached an agreement on migration, rising 0.5 percent to $1.1622 at 0800 GMT.
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