Premarket: Global stocks rise on U.S., China trade optimism

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Premarket: Global stocks rise on U.S., China trade optimism GlobeInvestor

Global stocks rose on Friday on optimism over trade talks between the United States and China and were set to post their best quarterly performance since 2012, while global bond yields moved higher after a prolonged slide on growth worries.

“Our base case is for the current tariff truce extension to yield only a partial resolution, including select U.S. tariff rollbacks in exchange for some Chinese concessions on imports, market access and intellectual property,” strategists at UBS wrote in a note to clients. MSCI’s All-Country World Index, which tracks shares in 47 countries, was up 0.17 per cent on the day. It was set to post its best quarterly performance since March 2012.

The 10-year U.S. bond yield edged up to 2.406 per cent from a 15-month low of 2.352 per cent touched on Thursday after an almost relentless fall since the Federal Reserve’s dovish tone last week sparked worries about the U.S. economic outlook. The single currency has also been weighed down by speculation the ECB will introduce a tiered deposit rate, providing a sign that policymakers plant to keep interest rates low for longer.The Turkish lira dropped 1.7 per cent, a day after it had plunged 4 per cent. President Tayyip Erdogan blamed the currency’s weakness on attacks by the West ahead of nationwide local elections on Sunday.

 

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