Global shares recover as Chinese markets gain ground
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London/Sydney — Shares crept back towards recent peaks on Monday as Chinese markets swung higher, while investors waited to see if the recent sell-off in longer-dated US treasuries would be extended and perhaps take some pressure off the dollar.
Europe was warming up to the new week slowly but was steady enough to keep MSCI’s broadest index of world shares inching closer to February’s record top of 581.02.
Chinese blue chips led the way with gains of 2.35%, as the country’s central bank provided more medium term loans to the financial system.
Beijing had also granted a patent for Cansino Biologics Covid-19 vaccine candidate Ad5-nCOV.
But Tokyo’s Nikkei fell 0.6% as Japan became the latest country to confirm its biggest economic contraction on record.
A retightening of Covid-19 measures in Italy was contributing to Europe’s groggy start, though Wall Street S&P 500 futures remained a solid 0.3% higher and just below the record close of 3,386.15.
Rabobank strategist Bas Van Geffen said the past few months had seen optimism build about a strong economic bounce-back, but steps like Covid measures being reimposed were an indication of the challenges.
“We have already cautioned that this is not going to be a V- shaped recovery ... and perhaps this is a sort of a sign to the markets that it is not going to be [a V-shaped bounce]”.
The US second-quarter earnings season wraps up with major retailers reporting this week, including Walmart, Home Depot and Kohls.
Chine-US relations remain a sticking point, with US President Donald Trump on Saturday saying he could exert pressure on more Chinese companies such as technology giant Alibaba after he moved to ban TikTok.
US crude oil shipments to China will rise sharply in coming weeks, as the world’s two top economies gear up to review their January deal after a prolonged trade war.
News that the scheduled review of the US-China phase 1 trade deal at the weekend had been postponed indefinitely did not elicit much of a reaction.
Eyeing the Fed
The highlight of the economic calendar will be the release of the minutes from the US Federal Reserve’s last policy meeting.
“Market participants will be looking for insight into the details and exact timing of when the Fed’s monetary policy review will be completed, and also for more clarity with respect to the potential timing and structure of any changes to forward guidance,” ...
Europe was warming up to the new week slowly but was steady enough to keep MSCI’s broadest index of world shares inching closer to February’s record top of 581.02.
Chinese blue chips led the way with gains of 2.35%, as the country’s central bank provided more medium term loans to the financial system.
Beijing had also granted a patent for Cansino Biologics Covid-19 vaccine candidate Ad5-nCOV.
But Tokyo’s Nikkei fell 0.6% as Japan became the latest country to confirm its biggest economic contraction on record.
A retightening of Covid-19 measures in Italy was contributing to Europe’s groggy start, though Wall Street S&P 500 futures remained a solid 0.3% higher and just below the record close of 3,386.15.
Rabobank strategist Bas Van Geffen said the past few months had seen optimism build about a strong economic bounce-back, but steps like Covid measures being reimposed were an indication of the challenges.
“We have already cautioned that this is not going to be a V- shaped recovery ... and perhaps this is a sort of a sign to the markets that it is not going to be [a V-shaped bounce]”.
The US second-quarter earnings season wraps up with major retailers reporting this week, including Walmart, Home Depot and Kohls.
Chine-US relations remain a sticking point, with US President Donald Trump on Saturday saying he could exert pressure on more Chinese companies such as technology giant Alibaba after he moved to ban TikTok.
US crude oil shipments to China will rise sharply in coming weeks, as the world’s two top economies gear up to review their January deal after a prolonged trade war.
News that the scheduled review of the US-China phase 1 trade deal at the weekend had been postponed indefinitely did not elicit much of a reaction.
Eyeing the Fed
The highlight of the economic calendar will be the release of the minutes from the US Federal Reserve’s last policy meeting.
“Market participants will be looking for insight into the details and exact timing of when the Fed’s monetary policy review will be completed, and also for more clarity with respect to the potential timing and structure of any changes to forward guidance,” ...
