Shares are gaining ground as investors await US inflation data

LONDON / HONG KONG (Reuters) – Global stock markets rose on Tuesday as strong Chinese trade data boosted confidence in a return to domestic demand, with market players expecting US data to rise in inflation.

China’s dollar exports rose more than 30 percent in March from a year earlier, while imports rose 38 percent, the fastest pace in four years, suggesting a post-pandemic recovery in domestic spending.

The broad Euro STOXX 600 gained 0.3% to near-record highs, with heavy German export stocks rising 0.2%. The stock index in Paris and London fell by 0.1%.

Investors focused on US inflation data for March, which was to be at 1230 GMT. Markets expect a forecast rise in inflation to accelerate recent movements of equity investors to turn to cyclical equities.

“The question for the next few months is not whether inflation will rise, but how far inflation will rise,” said Hugh Gimber, global market strategist at JP Morgan Asset Management.

“We see opportunities for further increases in Treasury yields during 2021. We would expect this to lead to a continuation of the rotation we have seen in the last six months or so, towards more cyclical sectors.”

The yield on the US Treasury at 10 reference years increased to 1.6908%, remaining below a 14-month high of 1.776% reached on March 30. Bond yields rise as prices fall.

The MSCI World Capital Index, which tracks stocks in 49 countries, has declined.

Wall Street futures were flat.

Earlier, Asian equities gained support for strong trading data from China, although the broader MSCI index of Asia-Pacific equities outside of Japan gave up gains – as did China’s blue-chip index, CSI300.

“China is benefiting from its growing recovery, ‘first, first exit,’ but also the global economy is accelerating and recovering, which will diminish some of China’s export performance in the coming quarters,” said John Woods, Asia Pacific’s chief investment officer. of Credit Suisse officer.

“SIGNIFICANT REBONDING”

In foreign exchange markets, the dollar rose by almost a three-week low against other major currencies on Tuesday, boosted by an increase in Treasury yields.

The dollar fell along with US yields this month after peaking for several months as markets expect the major fiscal stimulus, combined with continued monetary easing, to stimulate faster US growth and higher inflation.

Federal Reserve Bank of Boston President Eric Rosengren said Monday that the US economy could see a significant recovery this year due to weaker money and fiscal policy, but the country’s job market is still facing weakness.

He said that with inflation still below the central bank’s 2% target rate, the current “very accommodative” monetary policy position remained appropriate.

In the long run, Brent crude oil rose 37 cents, or 0.5%, to $ 63.63 a barrel by 0744 GMT. In the long run, US oil gained 27 cents, or 0.5%, to $ 59.58 a barrel.