Shares, commodities rise as sentiment towards China brightens
By Amanda Cooper
LONDON (Reuters) -Global shares rose on Monday, lifted by a growing expectations that the Federal Reserve will not raise interest rates any more, and by hopes that China's steady drip feed of policy stimulus might stabilise the economy.
A holiday in the United States kept a lid on activity ahead of key readings on U.S. services and Chinese trade and inflation later this week.
More policy action is also expected from Beijing, including relaxing restrictions on home buying.
There was relief that embattled property developer Country Garden won approval from its creditors to extend payments for an onshore private bond.
«Taken alongside other measures announced in prior weeks, it does appear that momentum is building for policy changes in China that could put a floor under sentiment and lift consumption,» Lazard (NYSE:LAZ) chief market strategist Ron Temple said.
«I continue to worry that there is not a sufficient sense of urgency among Chinese policy makers, but moves like those taken this week, combined with stabilization/improvement in PMI data could signal an upcoming turn in investor psychology,» he said.
MSCI's broadest index of Asia-Pacific shares outside Japan added 1.1%, having climbed 2.3% last week, thanks in large part to a 1.3% rise in Chinese blue chips.
The MSCI All-World index, which last week staged its strongest weekly rally since mid-July, was up 0.3%, while the dollar was around 0.2% lower on the day.
Investor sentiment in the tech sector will be tested this week by the initial public offering for chip giant Arm Holdings, which is aiming for a price in the range of $47 to $51, valuing the company between $50 billion and $54 billion.
S&P 500 futures and Nasdaq futures rose between
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