Global shares rose on Tuesday, lifted by a rally in Asia, where the yuan bounced after China pledged to step up support for its sputtering economy, while evidence of a slowdown in European growth dented the euro.
China’s top leaders pledged late on Monday to step up help for the economy, which is struggling to sustain a post-COVID recovery and signalled there would be more to come for the property industry.
The MSCI All-World index (.MIWD00000PUS) rose 0.2%, boosted by gains in the Chinese stock market, where the mainland index (.SSEC) rose 1.9% and Hong Kong stocks (.HSI) rose 3% thanks to a surge in property stocks that had been diving on debt repayment worries.
But the positive momentum did not carry over into Europe, where stocks and the euro struggled to remain in positive territory, as concern about recession resurfaced after regional surveys the day before showed business activity shrunk far more than expected in July.
“There’s a couple of things. Firstly, is that where European and U.S. traders are concerned, there are almost bigger fish to fry in this part of the world, with the Fed coming up tomorrow night and then the ECB on Thursday,” Michael Brown, a market strategist with TraderX said.