World stocks steady after five-day losing streak on likely policy stimulus in China
China markets reverse losses on indications of policy support and European shares open higher; emerging currencies and stocks show tentative gains
London — World stocks steadied near three-week lows on Wednesday and Chinese markets bounced after recent sharp falls as expectations grew that policy stimulus by Beijing could temper some of the impact from an escalating China-US trade conflict. The dollar too eased off 11-month highs against a currency basket, Wall Street looked set for a stronger opening, and MSCI’s all-country equity index snapped a five-day run of losses, rising 0.3%. Its rebound was fueled by a bounce of almost 1% in MSCI’s non-Japan Asian shares off six-and-a-half-month lows, following gains in Hong Kong, Seoul and mainland Chinese indices. Assets perceived to be safe, such as the yen, Swiss franc and the government bonds of Germany and the US, took a step back after hefty recent rallies. "I suspect safe-havens such as bunds and treasuries could be put to the test as risk sentiment shows signs of stabilising," Commerzbank strategist Rainer Guntermann said. One catalyst appeared to be a paper from China’s cent...
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