[ad_1]
(Adds movement in UK gilts, data, US stock futures)
* World stocks reach their highest level in six months
* European equities open upwards
* Oil is approaching $ 70 a barrel
* German 10-year bond yield rises above zero percent
* British pound on the rise as May calls Brexit a new deadline
* US equity futures indicate Wall Street is open
* Chart: Global exchange rates in 2019 tmsnrt.rs/2egbfVh
By Dhara Ranasinghe
LONDON, April 3 (Reuters) – World stocks hit Wednesday their highest level in six months, thanks to signs of progress in US-China trade talks, rebaduring economic statistics and hopes for a softer Brexit, helping to boost the yield of 10-year German bonds by zero percent.
Oil prices have reached a level close to the $ 70 a barrel mark – a record for several months – due to supply problems.
The pound sterling extended its gains after British Prime Minister Theresa May announced Tuesday night that she would be asking for another delay on the Brexit in order to conclude a divorce agreement between the EU and the leader of the Labor Party from the opposition, thus hoping for a "softer" Brexit. Signs of progress in US-China trade negotiations and decent data on factory activity in China and the United States in recent days have appeased sentiments and eased fears of a global recession.
European equity markets reached their highest level since August, while the broader Asia-Pacific equity index (MSCI) outside Japan peaked in seven months.
This left the MSCI World Equity index at its highest level in six months, as US equity futures heralded a solid start for Wall Street stocks.
"What we're seeing is that the markets have been worried but that progress has been made in trade, a recession is unlikely, central banks have given way to a more accommodative policy," said Chris Bailey, European strategist at Raymond James. "If you put that into the mix, I'm not surprised that risky badets have gone up."
The German stock market rose by more than 1%, reaching its highest level since October, while French equities have reached a similar level. A stronger pound, however, weighed on the London FTSE index, which was stable that day.
Wednesday's economic news also eased the sentiment: China's services activity hit a 14-month high in March, while euro area retail sales were stronger than expected in February.
The hopes of an agreement to end the trade war between the two largest economies in the world have been ravaged by new remarks by White House economic adviser Larry Kudlow that Washington hopes to "further progress" in the negotiations from this week.
"We are told that we are 90% of the way, which is obviously encouraging, but the remaining 10% – which apparently includes the enforcement mechanism and the removal of tariffs – could take a while to be settled, "said Craig Erlam. , senior market badyst at Oanda in London.
"Investors are happy to be patient here, in the hope that both parties will solve this problem and end a trade war that has clearly wreaked havoc on the markets."
For the Reuters Live Markets blog on the European and UK stock markets, please click:
The generally strong global stocks and hopes of a milder Brexit have caused a mbadive selloff of sheltered state bonds.
US 10-year Treasury yields rose nearly 4 basis points to 2.52%.
The 10-year German Bund benchmark rose to 0.01%, after reaching its lowest level in two and a half years at around minus 0.09% a week ago. The 10-year British gold yield jumped 7.5 basis points to 1.08%, making its biggest daily gain in three months.
The gold safe haven also suffered from the strength of the global stock markets, dropping to $ 1,292.63 an ounce.
Oil prices rose for a fourth day, pushing Brent to a peak of almost 70 months a barrel for nearly five months, as OPEC-led supply cuts and US sanctions United have eclipsed a report showing an unexpected increase in US stocks. US West Texas Intermediate Crude rose 0.16% to $ 62.68, after reaching $ 62.99, its highest level since November 7th.
BREXIT ROLLER CASE
Sterling rose further as traders welcomed the announcement of Britain's May deal with the opposition Labor party opening talks, saying Britain would end up with an exit. softer "of the European Union.
The pound sterling strengthened 0.4% to 1.3196 USD, its highest level since 28th March. The British currency fell below 1.30 USD on Friday, due to growing fears of a Brexit without agreement.
The dollar strengthened 0.15% against the yen at 111.49 and the euro at 0.4% to 1.1240 dollar.
The dollar index, which tracks the greenback versus a basket of six major rivals, declined 0.4% to 97,009.
The bitcoin cryptocurrency, which jumped 18.7% on Tuesday following a large order placed by an anonymous buyer, added 1.2% to $ 4,961.20. (Report by Dhara Ranasinghe in London, additional report by Andrew Galbraith in Shanghai, edited by Catherine Evans)
Source link
