Global Stocks Erase 2016 Losses on China Data
Iron ore jumps to 3-week high in China; crude oil retreats before producers’ meet
Singapore: The cloud that China cast over financial markets is starting to lift — and that’s a boon for stocks and commodities. After trade data pointed to stronger growth in the world’s second-biggest economy, global equities wiped out the last of this year’s losses, copper and iron ore jumped, and haven assets including the yen and gold retreated. The dollar rallied the most in three weeks after falling to a nine-month low.
After roiling financial markets in the first six weeks of the year, signs that the slowdown in the Chinese economy may not be as deep as some investors expected fueled a recovery in stocks from Asia to America. Speculation the oil market will soon find some enduring stability is also helping to prop up equities, even as investors brace for what’s projected to be the worst US earnings season since the global financial crisis.
The Standard & Poor’s 500 Index joined the global equities rally, with JPMorgan Chase rising after reporting earnings beat estimates. European stocks rose for a fourth
day, shares in emerging markets climbed to the highest since November, and China’s equities traded in Hong Kong gained the most worldwide. Russian stocks headed for their highest close since 2008. US crude slid, after surging 13% in three days before producers meet to discuss output at a meeting in Doha this weekend.
Stocks The MSCI All-Country World Index climbed 1.1% at 10:32 a.m. in New York, erasing a slide in 2016 that reached 12% and plunged the gauge into a bear market. The index has rallied more than 13% since.
The S&P 500 rose 0.5%, adding to a 1% rally on Tuesday even as data showed showed retail sales and wholesale prices unexpectedly slumped last month, casting doubt on both the strength of consumer demand and nascent inflation.
The Stoxx Europe 600 Index rose 2.1%, heading for its longest winning streak in more than a month. The MSCI Asia Pacific Index jumped 1.9% to the highest close since January 1. The Hang Seng China Enterprises Index of mainland shares listed in Hong Kong jumped 4%. The MSCI Emerging Markets Index rose for a fifth day, climbing 1.2%.
Currencies The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 peers, rose 0.5%, after reaching a nine-month low Tuesday. The US currency added 0.7% to $1.1311 per euro, its strongest in two weeks, and gained 0.6% to 109.17 yen.
San Francisco Federal Reserve President John Williams’ said on Tuesday that two or three interest rate increases this year was a reasonable call.