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* Global equities rebound over Asia and Europe
* 1.75 trillion dollars lost since June 12
* The most negative month is that of the Chinese yuan [19659002] * The dollar is rising since 2016
* The euro is rising after the EU summit
* Chart: Global exchange rates in 2018 tmsnrt.rs/2egbfVh
By Helen Reid
LONDON, June 29 (Reuters) – Global equities rebounded Friday from a week of choppy sales, as investor fears about rising trade barriers came close to reality.
The MSCI global equity index rose 0.5% to 10.45 GMT, its biggest gain in three weeks, but its second quarter is expected to be negative again as investors set their US rates the next week.
The US administration is expected to activate tariffs on Chinese goods worth $ 34 billion on July 6, which should give rise to a response from Beijing.
European equities rallied strongly, with the pan-European STOXX 600 up 1% and the German trade-sensitive DAX up 1.2%.
U.S. Stock futures also climbed 0.3 to 0.4%, even though they rose slightly after Axios reported that US President Donald Trump has repeatedly stated that "there is no need for equity futures. he wished to withdraw from the World Trade Organization.
This was the last sign of increased investor sensitivity to any signs of growing trade gap. Tariff disputes have already destroyed the Chinese yuan's holdings of European equities and erased $ 1.75 trillion in global equity since June 12.
The euro surged after a peak of the EU at $ 1,1635. This eased the threat to German Chancellor Angela Merkel's ruling coalition.
"The result of the summit tells us something about the seriousness of the situation," said Jan von Gerich, chief analyst at Nordea in Helsinki.
"I am not convinced that this will solve the underlying problems, but it was feared that the summit would fail and that the German government would collapse, so that the risk premium would be calculated" , did he declare. While Asian equities rose, the Chinese yuan experienced its worst month in a row, losing 3% against the dollar in June as investors pulling money from a market likely to suffer from higher trade barriers.
The Chinese yuan was traded Friday at 6.6441 for a dollar, its lowest since November, as speculators speculate that China may be trying to devalue its currency to offset the higher tariffs.
"We continue to believe that the movements of the yuan largely reflect the movements of emerging currencies, and are not the sign of a concerted devaluation effort," said BBH's foreign exchange strategists.
Despite gains on Friday, the CSI300 and Shanghai Composite are the best performers in the world this year.
Strongly opposed to the yuan, the US dollar has posted its strongest quarterly gains since the fourth quarter of 2016, thanks to the US Federal Reserve's decision to raise interest rates in June and forecast further gains this year.
The dollar index edged down 0.5% to 94,924 the day the euro rose, and the greenback rose 0.1% against the yen to 110.65.
European bonds diverged, with the EU summit's migration deal pushing German Bund yields higher while Italian 10-year government bond yields fell at a trough of a week.
The benchmark 10-year Treasury yield was maintained at 2.88419% and the yield curve slightly widened to 33.3 basis points.
Some investors see its flattening as a sign of recession may be around the corner.
The intensification of fears related to commercial rates contrasted with a still strong image of the global economy and robust growth in corporate profits.
"Our vision for this year is that asset markets are likely to underperform the real economy, as rapid growth, tighter financial conditions, higher inflation and more volatility would hurt valuations. even though BPA trends remain strong. " Analysts at Morgan Stanley lowered their benchmark targets for MSCI Europe on Thursday.
Despite trade tensions, the STOXX 600 has remained on its best quarter since the first quarter of 2017, and the British FTSE 100 has posted its strongest quarterly gain since 2010.
Oil prices have extended their gains over a tighter market as US sanctions against Iran threatened to remove a substantial volume of crude oil from global markets in the midst of increasing demand.
U.S. Crude rose slightly by 0.04% to $ 73.49 per barrel. Brent rose 0.2% to 78.01 dollars per barrel.
Gold remained near the lows of six and a half months, weighed down by commercial concerns, interest rate expectations and the strength of the dollar.
Spot gold was up 0.2% to $ 1250.81 an ounce, but was continuing its worst monthly performance since November 2016.
Emerging stocks jumped 1, 9%, after reaching a low of one month in the previous session. The index was still set for its worst month since January 2016, as the rising dollar beat the emerging economies.
Helen Reid Report
Editing by Robin Pomeroy and Peter Graff
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