World stocks and commodity markets recover after tailspin
China shares recover 2% and European shares edge up; the German bund and US treasury spread is growing, with traders on high alert for trade war moves
London — Stocks and commodity markets regained some poise on Thursday, having suffered wild tailspins in the previous session as the US ratcheted up trade-war threats on China. A 2% rebound on China’s big bourses steadied Asian nerves as oil markets clawed back some of Wednesday’s 7% slump that had marked their worst day in two-and-a-half years. Beaten-up industrial metals, including copper and nickel, and European stocks pulled higher too in early trade, while there was some relief for Turkish markets after the lira had been dumped to a record low by interest rate cut talk from its re-elected President Recep Tayyip Erdogan. The dollar, meanwhile, rose to a six-month high against the yen after US inflation data bolstered the case for more US Federal Reserve rate hikes this year. "It mostly seems to be relief after the all-red, risk-off day yesterday," said Rabobank strategist Bas van Geffen. "The basis for this is not entirely clear to me, though, because it doesn’t seem like this [...
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