Markets somewhat positive on bets about Chinese stimulus
World stocks are near six-month highs, but sentiment remains in check as investors mull how much more policy tightening is in store from the US Fed
London — A Chinese equity bounce set a modestly positive tone for world stocks on Wednesday as bets that Beijing would expand stimulus to support its economy helped offset some of the worries about global trade tensions and $80-a-barrel oil. World stocks hung not far off six-month highs, but sentiment remains in check as US benchmark bond yields stand close to seven-year peaks and investors weigh how much more policy tightening is in store from the US Federal Reserve. Shanghai-listed shares closed almost 1% higher at eight-week highs after global index provider MSCI said it could quadruple China's weighting in global benchmarks. That lent fresh impetus to a market already buoyed by expectations of impending state stimulus to offset the impact of US tariffs. Beijing is not expected to follow US Federal Reserve in raising interest rates this week. "The Chinese over the summer increased monetary stimulus for the system and may do more, though their ability going forward is going to be ...
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