World stocks hit four-month high, largely on US-China trade hopes
Dovish central banks also support the market as MSCI’s World Index hits its highest point since October as European stocks strengthen
London — World stocks hit a four-month high on Wednesday on hopes of progress in trade talks between the US and China, with a dovish backdrop at major central banks also helping push markets back into the black. US President Donald Trump said negotiations with China are going well and suggested he is open to extending the deadline to complete them beyond March 1. Up to now, it was assumed US tariffs on $200bn worth of Chinese imports would rise to 25% from 10% if no trade deal was reached by then. Asian shares soared on Trump’s comment, and European stock indices also strengthened, pushing the MSCI world equity index, which tracks shares in 47 countries, to a four-month high. Deutsche Bank’s chief strategist Jim Reid said the news flow is encouraging, despite signs that more progress is needed. “The overall feeling is that it is one step forward, three quarters of a step back at the moment. So positive momentum but still fragile,” he said in a note. While hopes for a trade deal betw...
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