Global stocks hit six-month high

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Signs of progress in US-China trade talks and decent factory activity data from China and the US has lifted investor sentiment

— World stocks rallied to six-month highs on Wednesday as investors cheered signs of progress in US-China trade talks and reassuring economic data, helping push Germany's 10-year bond yield back up to 0%.Sterling extended its gains after British Prime Minister Theresa May said late on Tuesday she would seek another Brexit delay to agree an EU divorce deal with the opposition Labour Party leader, raising hopes of a “softer” Brexit.

Hopes for a deal to end the trade war between the world's two largest economies were fanned by fresh comments from White House economic adviser Larry Kudlow that Washington expects “to make more headway” in talks this week. Germany's stock market rose 1% to its highest level since October, while in Paris, French stocks scaled a similar high. The stronger tone to the pound, however, weighed on London's FTSE index, which was a touch lower.

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