World stocks rise as China trade data better than expected; some countries try to restart economy on easing pandemic fears
Market sentiment was boosted by data showing China’s exports fell only 6.6 percent in March from a year ago, less than the expected 14 percent plunge.
London: World stocks gained on Tuesday after Chinese trade data came in better than expected and some countries tried to restart their economy by partly lifting restrictions aimed at containing the coronavirus outbreak.
European stock markets opened stronger, with the pan-European STOXX 600 index rising 0.6 percent to its highest since 11 March.
Analysts said the threat of a much deeper and prolonged downturn was starting to dissipate as new coronavirus cases declined in major economies and a raft of monetary and fiscal stimulus took effect globally.
Spanish shares gained 1.5 percent as some businesses re-opened, although shops, bars and public spaces were set to stay closed until at least 26 April.
“Although further slowdown in the pandemic’s spreading may keep sentiment supported, we are still reluctant to trust a long-lasting recovery, and we prefer to take things day by day,” said Charalambos Pissouros, analyst at JFD Group.
Market sentiment was boosted by data showing China’s exports fell only 6.6 percent in March from a year ago, less than the expected 14 percent plunge. Imports fell 0.9 percent compared with expectations for a 9.5 percent drop.
The gains in Europe took MSCI’s All-Country World Index, which tracks shares across 49 countries, up 0.5 percent.
Chinese shares gained, with the blue-chip index up 1.2 percent. Australian shares were up 1.7 percent and Japan's Nikkei rose 2.8 percent. Hong Kong's Hang Seng was up 0.9 percent.
MSCI’s broadest index of Asia-Pacific shares excluding Japan rose 1.3 percent to its highest in a month, up 20 percent from a four-year low on 19 March.
Investors are now eyeing the easing of virus-related restrictions in some regions for further trading cues.
In Europe, thousands of shops across Austria are set to re-open on Tuesday. Spain recorded its smallest proportional daily rise in the number of deaths and new infections since early March and let some businesses return to work on Monday.
In the United States, which has recorded the highest number of casualties from the virus in the world, President Donald Trump said on Monday his administration was close to completing a plan to re-open the US economy. However, some state governors say the decision to restart businesses lies with them.
Wall Street indexes ended mixed on Monday. The Dow and S&P 500 fell, but a 6.2 percent gain in Amazon shares helped the Nasdaq end higher.
“The pullback in US equities should come as no surprise in light of last week’s historic rally,” said Mark Haefele, chief investment officer at UBS Wealth Management, noting the S&P 500 posting its best weekly performance since 1974.
“Sentiment will zigzag until there is more clarity on formal measures to reopen major economies. More broadly, even though global markets have rebounded, it is difficult to say with any certainty whether the bottom has been reached.”
Oil prices rose around 1 percent after the US Energy Information Administration (EIA) predicted shale output in the world’s biggest crude producer would fall by a record amount in April, adding to cuts from other major producers.
US crude was up 0.85 percent at $22.55 a barrel, compared with a January peak of $63.27. Brent LCOc1 rose 1.3 percent to $32.16 a barrel.
Gold prices clung to highs not seen in more than seven years at $1,720.1 an ounce.
In currencies, the dollar extended losses on the back of the US Federal Reserve's massive new lending programme. It weakened against the Japanese yen to 107.7. The euro was up 0.2 percent at $1.0929. The risk-sensitive Australian dollar jumped 0.6 percent to $0.6420.
As per the Multi Commodity Exchange (MCX) data, gold futures that are set to mature on 5 April 2023, jumped 1.07 percent to Rs 58,507.00. Silver futures, which will mature on 3 March this year, surged 2.02 percent to Rs 71,250.00
In Patna, Bengaluru and Ahmedabad, 10 grams of 22-carat gold costs Rs 52,800. The same amount of 24-carat purity is priced at Rs 57,600 in the three cities
According to the Good Returns website, 10 grams of 22-carat gold in Kolkata and Mumbai is being traded at Rs 52,650