NEW YORK (Reuters) - Global equity markets rebounded on Tuesday on a report that said the United States and China hoped to resume talks to defuse a budding trade war, while the dollar jumped against the yen after the Bank of Japan said it intends to keep interest rates low.
FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 24, 2018. REUTERS/Brendan McDermid
BOJ reassurances that it will maintain its super-easy monetary policies for an “extended period of time” pushed the yen down and global bond yields lower.
The dollar firmed 0.75 percent against the yen, putting it on pace for its best day in nearly three weeks, after BOJ said it would keep rates “very low” in comments that brought some relief to a market that had braced for bigger changes.
While the benchmark 10-year Japanese government bond dropped 5 basis points after the announcement, investors await meetings by the U.S. Federal Reserve on Tuesday and Wednesday and the Bank of England on Thursday.
“We still have a decent amount of news ahead of us,” said George Goncalves, head of U.S. rates strategy at Nomura Securities International.
Stocks rebounded, with regional indexes for Britain’s FTSE 100, Germany’s DAX and France’s CAC 40 all climbing.
The pan-European FTSEurofirst 300 index of leading regional shares closed up 0.38 percent while MSCI’s gauge of stocks across the globe gained 0.29 percent.
The Dow Jones Industrial Average rose 144.27 points, or 0.57 percent, to 25,451.1. The S&P 500 gained 17.11 points, or 0.61 percent, to 2,819.71 and the Nasdaq Composite added 59.59 points, or 0.78 percent, to 7,689.60.
The market has withstood the recent technology sell-off and fears of a full-blown trade war remarkably well,
