London — The global stock market is renewed on Tuesday as US President Joe Biden and Chinese leader Xi Jinping hold a virtual talk for more than three hours, pushing China’s yuan to a five-month high and pulling the dollar down. I went to the peak.
Carefully watched conversations between the world’s largest economic leaders did not seem to have immediate consequences, but were widely seen as a joint effort to improve ice relations and avoid direct conflicts. I am.
Stephen Ecolo, Global Equity Strategist at Tradition in London, said:
“Market participants see these summits as an active effort to stabilize tense relationships and stimulate their appetite in risk-on-mode,” he added.
The Pan-European STOXX 600, Germany’s best stocks, and the CAC 40 benchmark in Paris all hit record highs, rising 0.2-0.4%.
Previously, MSCI’s widest non-Japanese Asia Pacific stock index rose 0.3% to its highest level since October 27, while Nikkei in Tokyo rose 0.1%.
Wall Street futures were flat, but Shanghai stocks fell slightly and defense stocks led the loss.
Overall, MSCI’s global stock index was at an astonishing distance from its historic peak last week.
While some investors have become wary of buying to record stock markets, many analysts believe that some benefits remain.
“The S & P 500 remains close to record highs, but strong economic and earnings growth, coupled with a easing policy background, should overcome inflationary concerns and support further equity growth,” said UBSGWM’s CIO. Mark Haefele writes. Tuesday morning notes.
The seemingly positive tone of the Biden-Xi negotiations also helped boost the onshore and offshore yuan.
Spot prices on land temporarily reached a high of 6.3666 per dollar, hitting a record high since June 1st and then giving up some rises.
The dollar fell in response to improved sentiment, the euro rose from its 16-month low and ended at $ 1.1374.
Benchmark 10-year Treasury yields rose, lasting at 1.6197%. This is a significant increase from the monthly low of 1.42% a week ago.
Later that day, US retail sales, trade prices, and industrial production in October are also planned, giving another hint of the world’s largest economic health.
In Europe, the benchmark German 10-year Treasury yield rose about 2 basis points to -0.222%.
European Central Bank Governor Christine Lagarde said Monday that pushing back market bets on monetary tightening policies and doing so now to curb inflation could hinder the recovery of the eurozone.
Oil rebounded from a weak start as Brent futures rose 0.98% at $ 82.85 a barrel.
Spot gold rose 0.13% to $ 1,865 an ounce, just below Monday’s five-month high of $ 1,870.
By Julien Ponthus and Alun John
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