Inventories rise according to Chinese trade data, easing fears of pandemic

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LONDON (Reuters) – World stocks rose on Tuesday after Chinese trade data arrived better than expected and some countries tried to restart their economies by partially lifting restrictions to contain the coronavirus epidemic.

European stock markets opened stronger, with the pan-European STOXX 600 index up 0.6% to its highest level since March 11.

Analysts said threat of much deeper and protracted recession was beginning to dissipate as new coronavirus cases declined in major economies and a series of monetary and fiscal stimulus took effect across the board world.

Spanish .IBEX shares rose 1.5% with the reopening of some businesses, although shops, bars and public spaces were to remain closed until at least April 26.

“While a further slowdown in the spread of the pandemic may maintain sentiment, we are still reluctant to trust a lasting recovery, and prefer to take things day by day,” said Charalambos Pissouros, analyst at JFD Group.

Market sentiment was boosted by data showing that Chinese exports fell only 6.6% in March from the previous year, less than the 14% dip expected. Imports were down 0.9% from expectations of a 9.5% drop.

Gains in Europe lifted the MSCI All Countries World Index, which tracks stocks in 49 countries, up 0.5%.

(GRAPH: Global stocks vs cases confirmed by COVID-19 – here)

Chinese stocks rose, with the .CSI300 benchmark up 1.2%. Australian stocks rose 1.7% and Japanese Nikkei .N225 rose 2.8%. Hong Kong’s Hang Seng .HSI rose 0.9%.

The largest MSCI Asia Pacific index excluding Japan rose 1.3% to its highest level in a month, up 20% from the four-year low on March 19.

Investors are now considering easing virus restrictions in certain regions for new trading indices.

In Europe, thousands of stores across Austria are slated to reopen on Tuesday. Spain recorded its smallest daily proportional increase in the number of deaths and new infections since the beginning of March and let some companies resume work on Monday.

In the United States, which has registered the highest number of victims of the virus in the world, President Donald Trump said on Monday that his administration was on the verge of finalizing a plan to reopen the American economy. However, some state governors say the decision to restart the companies is theirs.

Wall Street indices ended mixed on Monday. The Dow Jones and the S&P 500 fell, but a 6.2% gain in Amazon stocks helped the Nasdaq to finish higher.

“The decline in US stocks should come as no surprise in light of last week’s historic rally,” said Mark Haefele, chief investment officer at UBS Wealth Management, noting that the S&P 500 posted its best weekly performance since 1974.

“The sentiment will waver until there is more clarity on the formal measures to reopen the major economies. More broadly, even if global markets have rebounded, it is difficult to say with certainty whether the bottom has been reached. “

Oil prices rose about 1% after the US Energy Information Administration (EIA) predicted that shale production by the world’s largest oil producer would drop by a record amount in April, s ‘adding to the reductions of other major producers.

Crude oil rose 0.85% to $ 22.55 a barrel from a high of $ 63.27 in January. Brent crude oil rose 1.3% to $ 32.16 a barrel.

FILE PHOTO: The DAX graph of the German stock price index is shown on the Frankfurt Stock Exchange in Germany on April 9, 2020. REUTERS / Staff / File Photo

Gold prices have soared to record highs for more than seven years at $ 1,720.1 an ounce.

In foreign currency, the dollar has extended losses thanks to the huge new lending program of the Federal Reserve. It weakened against the Japanese yen JPY = at 107.7. The EUR = euro was up 0.2% to $ 1.0929. The risk-sensitive Australian dollar AUD = D3 jumped 0.6% to $ 0.6420.

(This story goes back to remove the unnecessary words in the title; no change in the text.)

Report by Ritvik Carvalho; additional reports from Swati Pandey and Anshuman Daga in Sydney and Singapore; edited by Larry King

Our standards:Principles of the Thomson Reuters Trust.

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