Stock markets inch higher as currency war fears ease

Stock markets inch higher as currency war fears ease

NEW YORK (Reuters) – Global stock markets rebounded Tuesday after China’s central bank fixed the yuan at a slightly stronger rate, soothing fears that a protracted trade war between the U.S. and China would spill over into a currency war as well. The slight gains followed a rout in global markets Tuesday after the yuan dropped past 7 to the dollar, spurring the United States to label Beijing a currency manipulator. 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 56.54 points, or 0.22%, to 25,774.28, the S&P 500 .SPX gained 9.73 points, or 0.34%, to 2,854.47 and the Nasdaq Composite .IXIC added 51.36 points, or 0.66%, to 7,777.40. The pan-European STOXX 600 index % and MSCI’s broad gauge of stocks across the globe .MIWD00000PUS gained 0.02%. 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 labelling China a currency manipulator gives the United States a legitimate reason to take even more steps,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. “The […]

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