LONDON: World stocks rallied to six-month highs on Wednesday as investors cheered signs of progress in U.S.-China trade talks and reassuring economic data, helping push Germany's 10-year bond yield back up to zero percent.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.
Generally strong world stocks and hopes of a softer Brexit sparked a sell-off in safe-haven government bonds, pushing yields off recent lows.U.S. 10-year Treasury yields rose almost 4 basis points to 2.52 percent. Oil prices stood near multi-month highs amid concerns about supply. Brent crude rose to as high as US$69.92 per barrel, its highest since November and near the psychologically important level of US$70 per barrel.
The pound strengthened 0.4 percent higher at US$1.3196, its highest since March 28. The British currency had slipped below US$1.30 on Friday on growing fears of a no-deal Brexit.