Global stocks climb as currency war fears ease

Global stocks climb as currency war fears ease

NEW YORK (Reuters) – World stock markets inched higher on Tuesday, propelled by solid gains on Wall Street, after China’s central bank stepped in to stabilize the yuan, soothing fears that a protracted trade spat between the United States and China would spill over into a currency war. Global markets had suffered a rout on Monday after China let the yuan fall below the 7 to the dollar level for the first time in more than a decade, spurring the United States to label Beijing a currency manipulator. On Tuesday safe-haven assets, including bonds, gold and currencies like the yen and Swiss franc, dipped as investors moved tentatively back into the euro, sterling and some emerging-market currencies. Yet investor sentiment remained fragile. “I think the tipping point for a more prolonged negative trend (for risk assets) is quite close,” said Hans Peterson, SEB Investment Management’s head of asset allocation. On Wall Street, the Dow Jones Industrial Average .DJI rose 311.78 points, or 1.21%, to 26,029.52, the S&P 500 .SPX gained 37.03 points, or 1.30%, to 2,881.77 and the Nasdaq Composite .IXIC added 107.23 points, or 1.39%, to 7,833.27. The pan-European STOXX 600 index lost 0.47% and MSCI’s broad gauge of stocks across the globe .MIWD00000PUS gained 0.50%. U.S. President Donald Trump and Treasury Secretary Steven Mnuchin said on Monday China was manipulating its currency, and that Washington would engage the International Monetary Fund to clamp down on Beijing. “Officially labeling China a currency manipulator gives the United States a […]

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