LONDON (Reuters) – Stocks gained modestly on Monday after a survey showed German business morale rebounded in May, while investors kept a close eye on escalating U.S.-China tensions in a thin trading session.
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 22, 2020. REUTERS/Staff
MSCI’s gauge of world stocks gained 0.4%, nearing a 2-1/2 month high. The pan-European STOXX 600 index and U.S. stock futures were up around 1% each.
Lockdown measures introduced in mid-March have put the global economy on track for a recession this year. Only unprecedented stimulus by global central banks has held up world markets in recent weeks.
With nervous investors wary of adding to their equity holdings over concerns on what a post-lockdown world would look like, Germany’s Ifo institute survey for May gave some relief.
The index rebounded more than a Reuters poll expected in May, recovering from its worst decline on record in April as a reopening of Europe’s largest economy boosted corporate expectations.
“The low point of the slump should now