Global Stocks Rise With Eyes on Trade
11 September 2019 - 7:13PM
Dow Jones News
By Anna Isaac
-- Asian, European stocks climb
-- Treasury yields rise
-- Oil bounces higher
Global stocks gained on Wednesday after China exempted certain
U.S. products from higher tariffs ahead of trade talks planned for
next month.
The Stoxx Europe 600 rose 0.6% in opening trade, with Germany's
DAX up 0.8% and France's CAC 40 up 0.5%.
China said higher tariffs wouldn't be levied against a variety
of U.S. imports for a year, starting Sept. 17, and that it would
continue to review more goods for exemption.
Hong Kong's Hang Seng led gains, climbing 1.6%, while Japan's
Nikkei rose 1%. The Shanghai Composite was the exception, with a
fall of 0.4%.
Korea's Kospi climbed 0.8% after positive jobs data from the
country helped to bolster confidence in its economy, suggesting
that government stimulus efforts were proving fruitful.
In Europe, Industria de Diseno Textil SA, the world's largest
fashion retailer by sales, saw its share price fall 2.3% after it
reported earnings for the first half of the year.
Investors have shown signs in recent days of expecting less
stimulus from the European Central Bank when it meets on
Thursday.
"Ahead of the ECB meeting investors seemed to take some chips
off the table with aggressive expectations being pared back," said
Antoine Bouvet, senior rates strategist at ING Bank in a note.
The yield on the benchmark 10-year German bund rose to minus
0.532%. Meanwhile, U.S. 10-year Treasury yields rose to 1.714% on
Wednesday, from 1.706% on Tuesday. Bond yields and prices move in
opposite directions.
The drivers for rising yields included better news on U.S.-China
trade and a reduced likelihood of a no-deal Brexit, according to
Oliver Jones, market economist at Capital Economics.
In commodities, oil prices rebounded from losses that came after
President Trump ousted John Bolton as his national security
adviser. Brent crude, the global benchmark, was up by 0.9% at
$62.93 a barrel.
Gold prices slipped 0.1%. Analysts at Commerzbank said the
precious metal may see its price rise in the medium term as
investors look to insulate themselves depreciations in major
currencies.
Write to Anna Isaac at anna.isaac@wsj.com
(END) Dow Jones Newswires
September 11, 2019 04:58 ET (08:58 GMT)
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