World stocks power to ten-month high

World stocks power to ten-month high

Friday’s survey showed sales of previously owned US homes jumped 7.2 per cent in July to mark the fastest pace in nearly two years.

Monday’s data showing a bigger-than-expected rebound in euro zone industrial new orders also aided sentiment. MSCI world equity index rose 0.7 per cent to reach levels not seen since October. The FTSEurofirst 300 index rose half a per cent.

US stocks

US stock futures were up 0.2 per cent in early trade. European credit default swap indexes fell sharply. The Markit iTraxx Crossover index, made up of 44 mostly ‘junk’ — related credits, fell 21.75 points to 581.25 bps.

Tokyo stocks jumped 3.4 per cent, their biggest one-day gain in 3-1/2 months. However, trading was thin, with turnover volume on the Tokyo stock exchange’s first section at its lowest level since July 28. Emerging stocks rose 1.75 per cent. Shanghai stocks rose 1.1 per cent. The Shanghai index posted its third weekly loss last week on concerns that the country’s banking regulator may tighten capital rules. Jitters that the pace of growth might be slowing or authorities might tighten the relatively loose monetary policy also weighed on sentiment.

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