Stocks Climb as Trade Angst Eases; Dollar Steadies: Markets Wrap

Bloomberg.com  — European stocks rose with U.S. futures, tracking gains in Asia, as the panic surrounding a potential global trade war showed signs of easing. Treasury yields and the dollar stabilized, and oil edged higher.

All sectors advanced as the Stoxx Europe 600 Index opened in the green following three days of losses. Earlier in Asia, equity markets struggled for direction before climbing. Shares in Japan and China both reversed declines, though the Shanghai Composite Index remained below the 3,000 level it fell through on Tuesday. Oil recovered to trade above $65 a barrel even as Iran signaled OPEC may fail to agree on output limits when it meets at the end of the week. The euro and pound fell.

The threat from U.S. President Donald Trump for tariffs on an additional $200 billion of Chinese goods was the latest in a series of shots in a spat between the world’s two biggest economies that could yet escalate into a full-blown trade war. Assets in emerging markets have been hit especially hard as the tensions coincide with projections for steeper U.S. interest-rate hikes.

Developing-nation stocks rose on Wednesday, paring some of their plunge a day earlier. Turkey’s lira fell again ahead of an election this weekend.

Elsewhere, the onshore yuan rose after the People’s Bank of China set its daily reference rate at a stronger level than all analyst and trader projections. Indonesia’s stocks were the worst performers in Asia as traders returned after a holiday. […]