World markets rise
World stock markets rose on Monday, as investors eyed the resumption of trade talks between the United States and China and watched for signs of progress on Brexit.
European markets took their cue from a 1 percent bounce in Chinese shares, which resumed trading after a week-long Lunar New Year holiday. The pan-European STOXX 600 index rebounded from one-week lows, helped by some deal-making and gains in mining and banking shares.
Worries about a slowdown in global growth, an ongoing U.S.China trade dispute and U.S. politics have been foremost in investors’ minds. Safe-haven bonds and the dollar have gained amid the prolonged uncertainty.
Stocks have had a good year so far notwithstanding, with MSCI’S All-Country World Index up nearly 10 percent since the start of the year. The index was nearly 0.2 percent higher on Monday.
China struck an upbeat note as talks resumed, but it also expressed anger at a U.S. Navy mission through the disputed South China Sea, casting a shadow over the prospect for improved Beijing-Washington ties. The two sides are trying to come up with a deal before a March 1 deadline, when U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.
In Asia, China’s blue-chip index surged 1.6 percent. Shanghai’s SSE Composite climbed 1.2 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan slightly higher after it fell from a four-month high on Friday. Trading volumes were generally light, with Japan on public holiday.
Elsewhere, the euro was barely changed at $1.1322 after five straight days of losses took it to more than two-week lows. Sterling fell to $1.2895 after UK GDP data for the fourth quarter was released.
Oil prices slipped on concern about slowing global demand and a pick-up in U.S. drilling activity. U.S. crude was 0.6 percent lower at $52.42 per barrel. Brent was flat $62.12.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.