Global stocks edge up after China shares rally

FE Team | Published: October 18, 2024 22:38:23

LONDON/TOKYO, Oct 18 (Reuters): Global shares edged higher on Friday, spurred by a rally in Chinese stocks on Beijing's latest policy steps to boost demand and also supported by robust US economic data out this week.
MSCI's index of global stocks edged up around a quarter of a percent, with tentative gains for European stocks. S&P 500 and Nasdaq futures, were also up 0.2 per cent and 0.5 per cent ahead of the Wall Street open.
Mainland Chinese blue chips had closed up 3.6 per cent, their biggest daily gain in eight sessions, after the country's central bank launched two schemes aimed at boosting stocks. Weak data on China's economy helped keep sentiment in check.
Investors remain alert to potential market volatility, with war in the Middle East still looming large and the US presidential election fast approaching. Several so-called 'Trump trades' have gained momentum in recent days as markets shorten the odds of a potential Donald Trump victory.
Traditional safe haven gold hit a fresh all-time high on the day, breaking above the $2,700 mark for the first time.
Third quarter earnings from major companies next week could also help set the tone for markets, after mixed results from a string of US and European blue chips in recent days.
"(Have we had) higher rates for too long? That is very much on people's radar. There's a bit of a worry about aggregate demand," said Ross Yarrow, managing director of U.S. Institutional Equities at investment bank Baird.
Payrolls data due on Nov. 1 is likely to be the next big test for sentiment on the US economy, Yarrow added.
The US dollar index hovered close to an 11-week high versus major peers on the day, dipping slightly to 103.64, after climbing to 103.87 on Thursday for the first time since Aug. 2.
Data on Thursday showed U.S. retail sales rose a stronger-than-expected 0.4 per cent last month, while a separate report showed initial jobless claims had dropped.
The 10-year US Treasury yield stood at 4.1025 per cent, little changed from Thursday, when it jumped 8 basis points.