World stocks are up on optimism over US-China trade talks

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The Euro Stoxx 600 and MSCI both gain ahead of a US Fed chair speech in which markets expect clues on looser policy

London — Traders sold government bonds and bought stocks on Wednesday, placing riskier bets on optimism about US-China trade and expectations of ample central bank stimulus before a key speech by the US Federal Reserve chair at Jackson Hole.

The MSCI world equity index, which tracks shares in 49 countries, gained 0.1%. Wall Street futures gauges were flat. Eurozone bonds calmed, with safe-haven bund yields rising a smidgen after enduring their worst session on Tuesday since May as better German economic data and trade dented hunger for government debt.

The dollar edged up slightly, after a knock a day earlier on data that showed US consumer confidence falling to the lowest in more than six years because of worries over the impact of the coronavirus pandemic on jobs.

 

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