Mainland Chinese blue chips had closed 3.6% higher, their biggest daily gain in eight sessions, after the central bank launched two schemes aimed at boosting stocks
Global shares rose on Friday, spurred by a rally in Chinese stocks on latest policy steps to boost demand and as robust U.S. economic data this week continued to boost investor sentiment.
MSCI’s index of global stocks rose a quarter of a percent, with tentative early gains for European stocks. Mainland Chinese blue chips had closed 3.6% higher, their biggest daily gain in eight sessions, after the 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 U.S. 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 reached a new 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 slew of U.S. and European companies in recent days.
Have we had higher rates for too long? That is very much on people’s radar. There is a bit of concern about aggregate demand, according to Ross Yarrow, MD of U.S. Institutional Equities at investment bank Baird.
Payrolls data due on November 1 is likely to be the next big test for sentiment on the U.S. economy, he said.
The U.S. dollar index stayed near an 11-week high versus major peers on the day, dropping slightly to 103.67, after jumping to 103.87 on Thursday for the first time since August 2.
Data on Thursday showed U.S. retail sales rose a stronger-than-expected 0.4% last month, while a separate report showed initial jobless claims had declined.
The 10-year U.S. Treasury yield sat at 4.0966%, little changed from Thursday, when it climbed 8 bps.