World stocks splutter after six-day rebound and as the dollar improves
London — A six-day rebound in world stocks began to splutter on Tuesday, as bond market borrowing costs regained traction and the dollar kicked firmly away from a three-year low. Europe’s main bourses saw a steady start as lower domestic currencies helped their cause, but weakness across Asia, where Tokyo saw a 1% drop, meant MSCI’s 47-country world share index was 0.2% in the red. The dollar, meanwhile, continued its rebound from three-year lows, having recovered 1.5% since Friday on the view that the US currency was due a correction after a brutal sell-off in recent weeks. US treasury 10-year yields — the benchmark for global borrowing costs — were also on the up again and approaching 3% for the first time in four years. "I just advise caution," said Principal Global Investors’ chief global economist Bob Baur about stocks as Wall Street futures also pointed lower. "I’m not sure whether this [early February sell-off] was the dip to buy; there will probably be a relapse and then ano...
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