European stocks ride China optimism, eurozone yields to record highs | – #European #stocks #ride #China #optimism #eurozone #yields #record #highs
LONDON, March 3 (Reuters) – Europe As investors’ risk appetite is boosted by signs of economic recovery in China, even after expectations of a Central Bank rate hike have kept government bond yields at their highest levels in recent years, Europe shares rose in early trading on Friday. .
Investors, in recent weeks USAThey are trying to gauge the Federal Reserve’s rate hike path after strong data from the .
But stocks rose on Wall Street overnight, with analysts buoyed by a move that Atlanta Federal Reserve President Raphael Bostic said Thursday that the Fed should stick to a “steady” quarterly rate hike.
Gains continued during Asian trade, with investors optimistic about signs that the world’s second-largest economy is making a steady recovery after the Chinese government abandoned strict COVID controls in December.
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Activity in China’s service sector expanded at its fastest pace in six months in February, the PMI survey showed, leading to solid growth in employment.
At 0940 GMT, the MSCI world equity index (.MIWD00000PUS), which tracks shares in 47 countries, was up 0.3% on the day and 0.8% higher for the week overall.
Europe’s STOXX 600 index 0.6% (.STOXX), London’s FTSE 100 index increased by 0.2% (.FTSE).
of Citi Europe head of currency strategy Vasileios Gkionakis said, “It appears that we are in a battle between the theme of China’s reopening, which is mainly due to a higher assessment of global growth expectations and the Fed’s re- prices means,” he said.
Gkionakis said global demand is growing even as risk assets face the negative effects of tighter monetary policy.
Business activity in the eurozone rose sharply last month, according to PMI survey data.
Eurozone on Thursday inflation Eurozone government bond yields were still near their highest levels in years after data pushed market expectations for the ECB’s key rate to around 4%.
Estonian Central Bank Governor Madis Müller made the case for another ECB interest rate hike on Friday, while ECB Vice President Luis de Guindos continued to inflation warned about.
USAof 10 the annual Treasury yield fell to 4.0067% from Thursday’s high of 4.091%.
with 2.744%, 10 annual German yields were at their highest level since 2011 and on track for their biggest weekly gain since December.
During the day, the euro rose 0.1% to $1.0609, USA The dollar decreased by 0.2% compared to the basket of currencies.
Oil prices fell, Brent crude oil futures fell 0.2%, and West Texas Intermediate crude oil futures fell 0.3%.
Cryptocurrencies took a hit as the crisis engulfing crypto-centric bank Silvergate worsened. Bitcoin fell about 4.7% to 22,373 dollars around, which is the lowest indicator since February 15.
Reporting by Elizabeth Howcroft; Edited by Alexander Smith
Our standards: Thomson Reuters Trust Principles.
Elizabeth Howcroft
2023-03-03 14:42:35
Source – reuters
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