Equities edge higher, bonds stable after Chinese stocks rally
By David Randall NEW YORK (Reuters) - Global equities markets edged higher and perceived safe havens such as U.S. Treasuries gained on Monday as investors weighed further financial stimulus in China against tightening economic restrictions in Italy after a resurgence of coronavirus cases among young people.
By David Randall
NEW YORK (Reuters) - Global equities markets edged higher and perceived safe havens such as U.S. Treasuries gained on Monday as investors weighed further financial stimulus in China against tightening economic restrictions in Italy after a resurgence of coronavirus cases among young people.
Chinese blue chips <.CSI300> led the way with gains of 2.35% as the country's central bank provided more medium-term loans to the financial system. Beijing also granted a patent for a CanSino Biologics <6185.HK> COVID-19 vaccine candidate, Ad5-nCOV.
Coronavirus cases in Italy have doubled over the past two weeks, prompting the country to reimpose restrictions on bars and nightclubs.
Rabobank strategist Bas Van Geffen said the past few months had seen optimism build about a strong economic bounce-back, but the reimposition of restrictions was an indication of challenges.
"We have already cautioned that this is not going to be a V- shaped recovery... and perhaps this is a sort of a sign to the markets that it is not going to be (a quick recovery)," Van Geffen said.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.45% following broad rallies in Asia and slight gains in Europe.
On Wall Street, the Dow Jones Industrial Average <.DJI> fell 86.11 points, or 0.31%, to 27,844.91, the S&P 500 <.SPX> gained 9.14 points, or 0.27%, to 3,381.99 and the Nasdaq Composite <.IXIC> added 110.42 points, or 1%, to 11,129.73.
The Nasdaq Composite set record highs, while the broader S&P 500 remained just under the record level it posted in February before broad lockdowns froze the economy in place.
U.S. second-quarter earnings season wraps up with major retailers, including Walmart
Sino-American relations remain a sticking point, after U.S. President Donald Trump on Saturday said he could exert pressure on more Chinese companies such as technology major Alibaba
Investors are looking ahead to Wednesday, when the Federal Reserve will release minutes from its latest policy meeting.
"Market participants will be looking for insight into the details and exact timing of when the Fed's Monetary Policy Review will be completed, and also for more clarity with respect to the potential timing and structure of any changes to forward guidance," analysts at NatWest Markets noted.
Speculation is rife that the Fed will adopt an average inflation target, which would seek to push inflation above 2% for some time to make up for the years it has run below that level.
That view combined with massive new debt supply to cause a sharp increase in longer-term bond yields last week, with 30-year yields
Benchmark 10-year notes
Oil prices rose on hopes of a rebound in Chinese demand.
(Reporting by David Randall; Editing by Will Dunham and Dan Grebler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.