Stocks rebound as Evergrande’s nervousness eases; The dollar slips past the Fed By Reuters


© Reuters. FILE PHOTO: An investor sits in front of a board displaying stock information at a brokerage office in Beijing, China December 7, 2018. REUTERS / Thomas Peter / File Photo


By Lewis Krauskopf and Tom Wilson

NEW YORK / LONDON (Reuters) -US and European stocks rose on Wednesday as market nervousness around property developer China Evergrande eased, while stocks edged down ahead of a US Federal Reserve meeting.

The gauge of MSCI stocks across the globe gained 0.62%, rebounding for a second day after posting its largest single-day percentage decline in two months on Monday.

The main Wall Street indices rose at the start of Wednesday’s session after strong gains for European markets.

China Evergrande agreed to settle interest payments on a domestic bond, while China’s central bank pumped liquidity into the banking system, allaying investor fears of impending contagion from the leveraged real estate developer who had lobbied on stocks and other riskier assets at the start of the week.

“Rightly or wrongly, I think people are starting to show signs that they think this pullback may have reached its worst point,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE 🙂 in Austin, Texas. “It wasn’t entirely Evergrande’s situation, but it looks like it was one of the bigger things.”

On Wall Street, the index rose 361.36 points, or 1.07%, to 34,281.2 points, gained 37.02 points, or 0.85%, to 4,391.21 and added 88 , 66 points, or 0.6%, to 14,835.06.

The pan-European index rose 0.93% as bank stocks soared.

As a number of central banks around the world convene this week, the Bank of Japan (BOJ) offered a darker outlook on exports and production, as Asian factory closures have created bottlenecks. bottleneck, but maintained his optimism that robust global growth would keep the economic recovery on track. BOJ Governor Haruhiko Kuroda also dismissed fears that Evergrande’s debt problems could disrupt the global financial system.

Investors were watching the Fed closely, with the US central bank set to lead the way on Wednesday for cuts to its monthly asset purchases later this year.

The dollar index fell 0.102%, the euro up 0.16% to $ 1.1742. The Japanese yen weakened 0.32% against the greenback to 109.56 per dollar.

US benchmark 10-year notes last rose 1/32, yielding 1.3209%, compared to 1.324% on Tuesday night.

Oil prices have climbed after industry data showed stocks fell more than expected last week after two hurricanes, highlighting tight supply as demand improves.

US crude rose 1.93% to $ 71.85 per barrel and to $ 75.77, up 1.9% on the day.

fell 0.1% to $ 1,773.31 an ounce after three sessions of gains.

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