🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

GLOBAL MARKETS-Share rally cools as U.S. turns up trade heat on Europe

Published 2019-04-09, 05:17 a/m
© Reuters.  GLOBAL MARKETS-Share rally cools as U.S. turns up trade heat on Europe
AIR
-
LCO
-
CL
-
DE10YT=RR
-

* MSCI Asia-Pacific hits 8-month high as Chinese shares rise

* Europe begins cautiously after U.S. tariff salvo

* Brexit summit, ECB meeting, earnings season in focus

* U.S. and Brent crude futures hit highest since Nov. 2018

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Marc Jones

LONDON, April 9 (Reuters) - April's equities rally risked running out of puff on Tuesday, as a U.S. threat to slap tariffs on hundreds of European goods and expectations of another chunky chop to the IMF's global growth forecasts tested investors' stamina.

Asia had eked out a 8-month high overnight but Europe was left flat after the office of the U.S. Trade Representative sent its proposals to the World Trade Organisation, saying the EU had provided $11 billion worth subsidies to Airbus. planemaker' shares AIR.PA dropped as much as 2.5 percent in early deals. Many of its key suppliers lost between 0.7 percent and 1.2 percent, though it could have been worse and most of Europe's big bourses clawed back to level. .EU

Aberdeen Standard Investment's head of global multi-asset strategy, Andrew Milligan, said: "Signals like this just remind people... that the strategic rivalry between the U.S. and other countries is serious and is not going to go away."

The day's other focus was set to be the International Monetary Fund's half-yearly forecasts, which are likely to reinforce the message that trade spats are contributing to slowing the global economy.

The Fund is expected to make quite a sizable cut to its growth number and Germany's benchmark 10-year bond yield stayed just below zero percent DE10YT=RR on bets interest rates are set to stay extremely low globally. GVD/EUR

In the FX market, Sterling nudged higher as UK Prime Minister Theresa May prepared to meet Germany's Angela Merkel and France's Emmanuel Macron to ask for another Brexit delay. Australian and Canadian dollars and Norwegian crown and Russian rouble also rose as a surge in oil prices to five-month highs lifted most other commodity-linked currencies too. /FRX

Brent LCOc1 , the global benchmark, rose as high as $71.34 a barrel, the highest since November, and by 0850 GMT was up 14 cents at $71.24. U.S. WTI crude CLc1 also hit a November 2018 high of $64.77 and was up 22 cents at $64.62. O/R

Oil prices - up more than 40 percent this year - have jumped on expectations that global supplies will tighten due to fighting in Libya, OPEC-led cuts and U.S. sanctions against Iran and Venezuela.

"Concerns over the potential squeezing of supply in Libya following the escalation of violence there are adding fresh impetus," analysts at JBC Energy wrote.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.