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GLOBAL MARKETS-Shares gain ground as investors await U.S. inflation data

Published 13/04/2021, 09:09
© Reuters.
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* Euro STOXX 600 up 0.3%
* China imports rise at fastest pace in 4 years
* Export-heavy German shares gain 0.2%
* Investors watch for US inflation due at 1230 GMT
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Tom Wilson and Scott Murdoch
LONDON/HONG KONG, April 13 (Reuters) - Global stocks ticked
up on Tuesday as robust China trade data boosted confidence for
a rebound in its domestic demand, with market players awaiting
U.S. data expected to show a pick-up in inflation.
China's exports in dollar terms rose by over 30% in March
from a year earlier, while imports jumped 38%, their fastest
pace in four years, suggesting a post-pandemic recovery in its
domestic spending. The broad Euro STOXX 600 .STOXX gained 0.3% to near record
highs, with export-heavy German shares GDAXI. up 0.2%. Indexes
in Paris .FCHI and London shares fell 0.1%.
Investors were focused on U.S. inflation data for March, due
at 1230 GMT. Markets expect a forecast pick-up in inflation to
accelerate recent moves by equity investors to rotate towards
cyclical stocks.
"The question for the next few months is not whether
inflation will pick up, but how far inflation is going to pick
up," said Hugh Gimber, global markets strategist at J.P. Morgan
Asset Management.
"We do see scope for further increases in Treasury yields
over the course of 2021. We'd expect that to drive a
continuation of the rotation that we've seen over the past six
months or so towards more cyclical sectors."
The yield on benchmark 10-year U.S. Treasuries US10YT=RR
was up at 1.6908%, holding below a 14-month high of 1.776%
reached on March 30. Bond yields rise when prices fall.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 countries, was down.
Wall Street futures gauges were flat. ESc1 NQcv1
Earlier, Asian stocks had gained support on the strong China
trade data, though MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS gave up its gains - as did China's
blue-chip index, CSI300. .CSI300
"China is benefiting because of its surging 'first, first
out' recovery but the global economy is also accelerating and
picking up and that will diminish some of China's export
performance in the quarters ahead," said John Woods, Credit
Suisse's Asia Pacific chief investment officer.

"SIGNIFICANT REBOUND"
In currency markets, the dollar =USD rose from near a
three-week low against other major currencies on Tuesday, buoyed
by a bump in Treasury yields. The dollar has eased back along with U.S. yields this month
after surging to multi-month peaks as markets expect that major
fiscal stimulus, coupled with continued monetary easing, will
spur faster U.S. economic growth and higher inflation.
Boston Federal Reserve Bank President Eric Rosengren said
Monday the U.S. economy could see a significant rebound this
year due to looser money and fiscal policy but the country's job
market still faced weakness.
He said with inflation still below the central bank's 2%
target rate the current "highly accommodative" monetary policy
stance remained appropriate. Brent crude oil futures LCOc1 were up 37 cents, or 0.5%,
at $63.63 a barrel by 0744 GMT. U.S. crude oil futures CLc1
gained 27 cents, or 0.5%, to $59.58 a barrel.

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World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
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