US – CHINA RIFT REMAINS A BIG THREAT TO GLOBAL MARKET
Stocks in Europe and Asia gained along with American equity-index futures as investors are optimistic over reemerging economies.
Investors are looking to the reopening of economies from Japan to Australia and the U.S. to provide impetus to global stock markets, which remain about 30% higher than the March lows.
China’s yuan plummets at its lowest since 2008 after the increasing acrimony drove the currency to a seven-month low on Friday.
The dollar was steady, and crude oil added to last week’s strong advance.
Construction and industrial-goods shares led a broad advance in the Euro Stoxx Index.
Bayer AG leaped almost 8% as it resolves cancer lawsuits.
In Asia, Hong Kong shares inched higher after Friday’s slump, following police clashes at the weekend with protesters rallying against China’s attack on dissidents.
Benchmarks in Tokyo and Sydney led advances in the region’s stocks.
China’s yuan plummets at its lowest since 2008 after the increasing acrimony drove the currency to a seven-month low on Friday. A benchmark of emerging-market stocks headed for its first rise in three sessions.
A rise in a gauge of German business expectations provided another glimmer of hope for equity bulls.
How the market will play out in cumulative months hinges on disparities between the west and the east but focus should remain on a recovering economy as Big Pharma races to come up with a vaccine to contain COVID19.
One big threat to the recovery in markets is the escalating war of words between the U.S. and China,” said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. in Sydney.
The main focus will likely remain on continuing evidence that the number of new Covid-19 cases is slowing in developed countries, progress towards medical solutions, the reopening of economies and signs that economic activity is picking up.