Business hopes, technology and Turkey strengthen world stocks

LONDON (Reuters) – Stocks rose on Friday as the United States and China planned to open new trade talks, while rising interest rates in Turkey would support reading and selling. appetite for global risk.

The MSCI All-Country World Index, which tracks stocks in 47 countries, rose nearly half a percent after the start of trading in Europe.

Driven by technology stocks and auto stocks, the pan-European STOXX 600 index rose by half a percent, set at its best weekly earnings in seven weeks.

Technology stocks advanced 0.7% after Apple won Wall Street after Europe closed. [.EU].

The largest MSCI index of Asia Pacific ex-Japan equities rose 1.2%. Australian equities rose 0.6%, Seoul 1.4% and Hong Kong 1%. The Japanese Nikkei stock index was up 1.2%.

These gains followed Thursday's gains on Wall Street, with the Dow Jones Industrial Average ending up 0.57%, the S & P 500 gaining 0.53% and the Nasdaq Composite adding 0.75%.

Chinese stocks fell, despite a short period of time from data showing industrial production and retail sales figures for August.

Other data showed that real estate investment in the country had declined in August, raising fears that the cooling real estate market would increase risks for China's economic prospects as the business environment deteriorated.

China's benchmark composite index for China fell by 0.2% and the CSI300 index by 0.2%.

The Chinese authorities welcomed the invitation of Treasury Secretary Steven Mnuchin for further talks. But US President Donald Trump has tempered market expectations, twitching Thursday that the United States was "not under pressure to reach an agreement with China."

The Trump administration is preparing a final list of 200 billion dollars of Chinese imports that it plans to collect tariffs in the coming days. This decision would mark an escalation in the trade war and could significantly slow global growth.

Analysts at Capital Economics have noted that Mnuchin had reached an agreement with China in May that was interrupted a few days later by Trump.

"As a result, he has little credibility with Chinese policymakers," they said.

The English language newspaper China Daily said in an editorial Friday that China would not "give in" to US requirements and "would not hesitate to take countermeasures against US tariffs to protect China's interests." .

The uncertainty surrounding the global trade outlook was underscored by the European Central Bank, which maintained its unchanged policy as planned on Thursday and warned that the risks of protectionism were increasing.

"EYE-WATERING"

A sharp rise in Turkish central bank interest rates to support the fall of the lira has boosted risk appetite in emerging markets. The bank increased its benchmark interest rate by 625 basis points to 24%.

The currency crises in Turkey and Argentina have fueled fears of contagion in recent weeks, hammering emerging market assets from Indonesia to India and South Africa.

After reading 6.4442 for a dollar, the reading fell slightly to 6.0768 on Friday.

The implied volatility gauge of the Turkish lira fell to its lowest level in more than a month on Friday, as sentiment continued to improve.

"The bold decision (of the Turkish central bank) reduces the risk of a large-scale financial crisis," Rabobank analysts wrote in a note to their clients.

"That said, this is only the first step and we remain of the opinion that a rate hike per se may not be enough to lead to a sustainable recovery of the lira. The efforts of the central bank must be accompanied by the implementation of constructive macro prudential policies by the administration. "

The euro hit its highest level in two weeks, extending Thursday's gains after comments from ECB President Mario Draghi on the country's strong fundamentals, notably the rapid growth in employment and growth. rising wages. [FRX/].

The pound hit a six-week high of $ 1.3139, up 0.3% and its second-highest weekly increase in 2018. [GBP/]

The dollar fell 0.1% against the yen to 111.82.

The US crude was 0.3% to $ 69.12 a barrel as Hurricane Florence was approaching the east coast of the United States. Brent crude rose 0.6% to $ 78.62 a barrel.

Spot gold gained more than half a percent to $ 1208.05 an ounce. [GOL/]