European stock markets inched higher on Monday as expectations for a flurry of bumper corporate earnings and merger speculation outweighed fears about the escalating trade conflict between Beijing and Washington.
World stocks rose for a second consecutive week on Friday as investors prepared for an expected run of strong earnings in the United States, although fears about the U.S.-China trade conflict kept gains in check and pushed the dollar higher.
Stocks and commodity markets regained some poise on Thursday, having suffered wild tailspins in the previous session as the United States ratcheted up trade war threats on China.
Stocks fell and metals prices slumped to their lowest in a year on Wednesday, as U.S. threats of tariffs on an additional $200 billion worth of Chinese goods pushed the world’s two biggest economies ever closer to a full-scale trade war.
The MSCI world equity index .MIWD00000PUS, which tracks shares in 47 countries, rose 0.4%, while the pan-European STOXX 600 index was up 0.6%.
World stocks were dragged lower on Wednesday by growing anxiety ahead of Washington’s end of week deadline to impose tariffs on Chinese imports, while the yuan rebounded after China’s central bank moved to calm investors.
If last year’s financial markets boom was down to a ‘Goldilocks’ global economy, 2018 has so far been all about the bears, with the worst start to a year for world stocks since 2010.
MSCI’s index of world stocks rose 0.5 percent by 0800 GMT, its strongest gain in three weeks.
Pressure on world shares from a U.S.-driven trade dispute mounted on Thursday, as a fast-charging dollar and a jump in oil prices also cranked up the pain in emerging markets.
A 2 percent slide in Chinese equities on Wednesday and a fresh weakening in the yuan highlighted mounting stress on the world’s number two economy from trade tensions with the United States, while global stocks slipped to approach two-month lows.