NEW YORK (Reuters) – World stock markets hovered near three-month highs and safe-haven government bonds inched lower as risk appetite grew on signs that the global economic downturn has bottomed, despite worries over violent protests in the United States and unease over Washington’s standoff with Beijing.
U.S. President Donald Trump left a trade deal with China intact Friday despite moving to end Washington’s special treatment for Hong Kong in retaliation for Beijing seeking to impose new security legislation on the city.
China has asked state-owned firms to halt purchases of soybeans and pork from the United States in response, two people familiar with the matter said.
“The Trump rhetoric against China and trade impediments against Hong Kong could have been a lot worse, hence the performance of those markets this morning, which has helped the risk backdrop,” said Chris Bailey, European strategist at wealth manager Raymond James.
MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.94% following broad gains in Asia and Europe. The index .MIWD00000PUS is up more than 35% from its March lows.
On Wall Street, the Dow Jones Industrial Average .DJI rose 91.91 points, or 0