A Chinese equity bounce set a modestly positive tone for world stocks on Wednesday as bets that Beijing would expand stimulus to support its economy helped offset some of the worries about global trade tensions and $80-a-barrel oil, Reuters reports.
World stocks hung not far off six-month highs, but sentiment remains in check as U.S. benchmark bond yields stand close to seven-year peaks and investors weigh how much more policy tightening is in store from the U.S. Federal Reserve.
Shanghai-listed shares closed almost one percent higher at eight-week highs after global index provider MSCI said it could quadruple China’s weighting in global benchmarks.
That lent fresh impetus to a market already buoyed by expectations of impending state stimulus to offset the impact of U.S. tariffs. Beijing is not expected to follow U.S. Federal Reserve in raising interest rates this week.