World shares and bond yields rode a renewed surge in risk appetite on Tuesday, as investors were optimistic about U. S.-China trade talks and cheered Washington’s deal to avoid another government shutdown.
LONDON (Reuters) – World shares and bond yields rode a renewed surge in risk appetite on Tuesday, as investors were optimistic about U. S.-China trade talks and cheered Washington’s deal to avoid another government shutdown.
Tokyo’s Nikkei set the tone with its best day of the year so far [. T] and Europe wasted little time in trying to lift the STOXX 600 back to the two-month high it set last week.
Germany’s DAX jumped more than 1.2 percent, after rising 1 percent on Monday, and Paris and Milan were up 0.8 percent, while London’s FTSE approached a four-month peak despite ongoing Brexit uncertainty.
The dollar hovered at a two-month high and the Australian dollar also gained. The yen and Swiss franc dipped while U. S. Treasury and German bund yields edged up as investors jettisoned safe havens.
“We have had two bits of relatively good news overnight – optimism about the U. S. shutdown not resuming and optimism about a trade deal,” said Societe Generale strategist Kit Juckes.
“Equities are higher, bond yields are a little bit higher, yen and Swiss franc weakest overnight of the major currencies so it’s sort of risk-on rules OK!”
Juckes said he reckoned there was now a 75 percent chance that a ratcheting up of U.
