Biden-Xi talks lift stocks ahead of U.S retail data

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LONDON (Businesshala) – Global stock markets marched toward new peaks after more than three hours of virtual talks between US President Joe Biden and Chinese leader Xi Jinping, while the dollar gained 16 per cent from US retail sales data later on Tuesday. kept the month high. ,

FILE PHOTO: A woman wearing a protective mask, amid the COVID-19 outbreak, walks past an electronic board displaying stock indexes of Japan and other countries outside a brokerage in Tokyo, Japan, September 21, 2021. Businesshala / Kim Kyung-hoon

Closely watched talks between the leaders of the world’s largest economies yielded no immediate results, but are widely seen as a joint effort to mend icy relations and avoid direct confrontations.

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“Markets are trading courtesy of the Biden-Xi virtual summit north, which seems to have eased US-China tensions somewhat,” said Stephen Acolo, global equity strategist at Tradition in London.

“Market participants view such summits as a positive attempt to stabilize strained relations, fueling risk-on mode appetite,” he said.

The pan-European STOXX 600, German blue chips and the Paris CAC 40 benchmark all set new record highs of between 0.4 and 0.5% in morning trade.

Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% to its highest level since October 27.

Wall Street futures rose and MSCI’s world stock index hovered at striking distance from last week’s historic peaks.

While some investors are wary of buying into the record-breaking equity markets, many analysts believe that there is some upside left.

“We believe that earnings growth in 2022 will continue to support the markets, albeit at a slower pace,” wrote Julian Lafarge, chief market strategist in Barclays Private Bank’s outlook for 2022.

The dollar index was flat, but held up at levels not seen since July 2020, while the euro, in contrast, was trading at new lows of $1.1352 16 months ago.

Rising cases of COVID-19 infections are weighing on the euro, as some countries such as Austria and the Netherlands have implemented new social restrictions to curb the spread of the disease.

Another factor at play against the common currency European Central Bank President Christine Lagarde stressed on Monday against bets for tighter monetary policy, saying doing so could stall the euro area’s recovery.

The benchmark German 10-year government bond yield was flat at -0.244%, while the 10-year US Treasury yield was also slightly up at 1.6129%, still a week since hitting a one-month low of 1.42%. It jumped a lot. Earlier.

Traders were waiting for US retail sales, trade prices and industrial production data for October to gain another insight into the health of the world’s largest economy.

Oil rose 0.65% to $82.58 a barrel on a weak start with Brent futures. [O/R]

Spot gold rose 0.53% to $1,872 an ounce and hit a new five-month high. [GOL/]

Reporting by Julian Ponthus and Alun John; Editing by Sam Holmes, Sri Navaratnam, Robert Birsel and Timothy Heritage


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