World stocks rebounded on Wednesday after China’s manufacturing activity expanded at the fastest pace in more than a decade, while stronger-than-expected inflation numbers across the eurozone battered government bonds.
“The surprises in January inflation releases have challenged hopes for a smooth return to target inflation,” said Bruno Schneller, an MD at INVICO Asset Management. The next flush of economic indicators are likely to be crucial as markets gauge whether future rate hikes are sufficiently priced in now.Stock markets looked beyond Europe, though, cheered by numbers from China’s factory sector, which in February grew at the fastest pace in more than a decade .
The index provider’s broader world stock offering last rose 0.4%. European stocks followed suit, with the continent-wide Stoxx 600 rising 0.1% by 9.55am GMT, kicking off the month on steady ground following a solid start to the year.