London — World stocks hit a three-week high on Thursday and the euro and German bund yields also rose as investors priced in a potentially earlier than expected wind down of stimulus from the European Central Bank (ECB). The sell-off in safe-haven bunds drove money into riskier assets, especially financial stocks, despite investors’ anxiety over how a Group of Seven (G-7) leaders summit that kicks off on Friday will pan out in view of global trade concerns. Bank stocks, which tend to gain from higher bond yields, drove European shares up in early trade. The pan-European banks index jumped 1.4%, helping the Stoxx 600 gain 0.5%. Banks remain the worst-performing sector in Europe year to date, however, having been dented by a sell-off triggered by political risk in Italy. MSCI’s index of world stocks rose 0.3% to its highest since May 14, helped by Asian shares that climbed to an 11-week high overnight. The euro and Germany’s benchmark 10-year bond both climbed on signs that the ECB co...
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