London — World stocks hit their highest in almost two years on Tuesday, keeping record highs in sight, following fresh signs that the US and China are working to end a bitter trade war that has dealt a blow to the global economy.
Alibaba shares opened almost 7% higher in Hong Kong than their issue price and at a small premium to pricing in New York. The listing has been seen as a vote of confidence in Hong Kong after months of anti-government protests that have rocked the former British colony. A flurry of major acquisition activity has also supported world shares, with France’s LVMH offering to buy US jeweller Tiffany & Co and Charles Schwab agreeing to purchase US discount brokerage TD Ameritrade Holding.
The US has imposed tariffs on Chinese goods in a 16-month long dispute over trade practices the US government says are unfair. China has responded with its own tariffs on US goods. Yields on safe-haven government bonds in the eurozone nudged higher, although the limited rise in borrowing costs suggested caution from bond investors.