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REFILE-GLOBAL MARKETS-Stocks rise on China trade data, easing pandemic fears

Published 14/04/2020, 09:02
© Reuters.
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* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Ritvik Carvalho
LONDON, April 14 (Reuters) - World stocks gained on Tuesday
after Chinese trade data came in better than expected and some
countries tried to restart their economy by partly lifting
restrictions aimed at containing the coronavirus outbreak.
European stock markets opened stronger, with the
pan-European STOXX 600 .STOXX index rising 0.6% to its highest
since March 11.
Analysts said the threat of a much deeper and prolonged
downturn was starting to dissipate as new coronavirus cases
declined in major economies and a raft of monetary and fiscal
stimulus took effect globally.
Spanish shares .IBEX gained 1.5% as some businesses
re-opened, although shops, bars and public spaces were set to
stay closed until at least April 26. .EU
"Although further slowdown in the pandemic's spreading may
keep sentiment supported, we are still reluctant to trust a
long-lasting recovery, and we prefer to take things day by day,"
said Charalambos Pissouros, analyst at JFD Group.
Market sentiment was boosted by data showing China's exports
fell only 6.6% in March from a year ago, less than the expected
14% plunge. Imports fell 0.9% compared with expectations for a
9.5% drop. The gains in Europe took MSCI's All-Country World Index
.MIWD00000PUS , which tracks shares across 49 countries, up
0.5%.
Chinese shares gained, with the blue-chip index .CSI300 up
1.2%. Australian shares .AXJO were up 1.7% and Japan's Nikkei
.N225 rose 2.8%. Hong Kong's Hang Seng .HSI was up 0.9%.
MSCI's broadest index of Asia-Pacific shares excluding Japan
.MIAPJ0000PUS rose 1.3% to its highest in a month, up 20% from
a four-year low on March 19.
Investors are now eyeing the easing of virus-related
restrictions in some regions for further trading cues.
In Europe, thousands of shops across Austria are set to
re-open on Tuesday. Spain recorded its smallest proportional
daily rise in the number of deaths and new infections since
early March and let some businesses return to work on Monday.
In the United States, which has recorded the highest number
of casualties from the virus in the world, President Donald
Trump said on Monday his administration was close to completing
a plan to re-open the U.S. economy. However, some state
governors say the decision to restart businesses lies with them.
Wall Street indexes ended mixed on Monday. The Dow and S&P
500 fell, but a 6.2% gain in Amazon shares helped the Nasdaq end
higher. "The pullback in US equities should come as no surprise in
light of last week's historic rally," said Mark Haefele, chief
investment officer at UBS Wealth Management, noting the S&P 500
posting its best weekly performance since 1974.
"Sentiment will zigzag until there is more clarity on formal
measures to reopen major economies. More broadly, even though
global markets have rebounded, it is difficult to say with any
certainty whether the bottom has been reached."
Oil prices rose around 1% after the U.S. Energy Information
Administration (EIA) predicted shale output in the world's
biggest crude producer would fall by a record amount in April,
adding to cuts from other major producers. O/R
U.S. crude CLc1 was up 0.85% at $22.55 a barrel, compared
with a January peak of $63.27. Brent LCOc1 rose 1.3% to $32.16
a barrel. O/R
Gold prices XAU= clung to highs not seen in more than
seven years at $1,720.1 an ounce.
In currencies, the dollar extended losses on the back of the
U.S. Federal Reserve's massive new lending programme. It
weakened against the Japanese yen JPY= to 107.7. The euro
EUR= was up 0.2% at $1.0929. The risk-sensitive Australian
dollar AUD=D3 jumped 0.6% to $0.6420. USD/


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