Global stocks stage modest rebound after late Wall Street surge

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Global equities are still headed for their worst January since 2016 after a bruising month for riskier assets

An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange. File photo: BLOOMBERG via GETTY IMAGES/LUKE MACGREGOR

Still, investors say the backdrop for equities remains uncertain as central banks raise interest rates — the Bank of England is expected to hike again on Thursday — and another jolt higher in oil prices adds to inflationary worries.Lunar New Year holidays made for thin conditions and MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.73% in slow trade.The MSCI World index, while higher on Monday, remains down more than 6% in January — the worst start to the year since 2016.

Data out on Sunday showed China’s factory activity slowed in January as a resurgence of Covid-19 cases and tough lockdowns hit production and demand. Brent rose 0.68% to $90.64 a barrel, not far from Friday’s high of $91.7, while US crude climbed 0.89% to $87.06.Government bond yields held steady as the rebound in stocks limited demand for the safe-haven assets. Yields have jumped this year in anticipation of a faster rate of rate rises in 2022 but the rally in longer-term yields has paused in the past week.

Big data releases this week include the ISM readings on manufacturing and services, and the January jobs report.

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