Global markets rally on US jobs data, central banks’ show of strength
The week started off with renewed optimism, with the resumption of US-Sino talks helping to lift the mood after a dismal few weeks
London — A set of strong employment data in the US, decisive action from the Chinese central bank and dovish messages from US Federal Reserve chief Jerome Powell combined to push world stocks further off recent lows on Monday. The resumption of talks between the US and China on tariffs also helped bring back some optimism to a market battered in recent weeks by trade tensions and a weakening global growth outlook. European shares held on to Friday’s strong gains after a stellar opening for Asian bourses, pushing MSCI’s world equity index, which tracks shares in 47 countries, to its highest level in two-and-a-half weeks. It is now 6% higher than its December trough. “It is a reminder that central banks still have some firepower to deal with lower growth prospects, and perhaps what we are also getting some return of liquidity as investors return from the holidays and the ability to think things through,” said Investec economist Philip Shaw. He warned, however, that there is continued ...
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