Reuters, London :
World shares climbed for a third day running on Tuesday, as China promised fiscal action to support the world’s second-largest economy and stellar results from internet giant Alphabet underpinned the tech stocks. Global bonds remained under pressure on speculation the Bank of Japan may soon trim its massive stimulus. The euro was choppy as a dip in French business confidence was offset by signs of strength in German manufacturing.
European stocks were also up, partly thanks to some upbeat results from UBS, autos firm PSA and chipmaker AMS [.EU], but also just riding in the slipstream of Asia’s and Wall Street’s overnight gains. [.EU]
China’s government bond yields jumped and the offshore yuan hit a one-year low after Beijing’s cabinet said it would pursue a more vigorous fiscal policy and as traders bet on further easing in monetary conditions.
Shanghai blue chips closed up 1.5 percent at a one-month high [.SS] and Japan’s Nikkei had added 0.5 percent, even though a disappointing reading on factory activity suggested the threat of a trade war was starting to bite.
“The big story is that the Chinese currency continues to slide,” said Societe Generale FX strategist Alvin Tan.
“It is clear the government is moving towards policies that are supporting growth,” he adding, saying the trend was likely to bring a reaction from the United States in time.
E-Mini futures for the S&P 500 firmed 0.2 percent, as European bourses shuffled higher.
Tech stocks got a boost from Alphabet, the parent of Google, which jumped 3.6 percent after hours to a record high, valuing the group at $870 billion.
A man looks at an electronic stock quotation board outside a brokerage in Tokyo, Japan February 9, 2018.
