LONDON (Reuters) – The world's stocks jumped off almost two years on Thursday, lifted by a dramatic Wall Street surge, although a fall in Chinese industrial surplus and renewed Italian bank concern offered an innovative reminder of the problems that weigh on the world economy.
The Dow Jones Industrial Average increased more than 1,000 points for the first time on Wednesday, which led to a broad Wall Street rebound, after a report on holiday sales being the strongest for many years contributing to the health of the economy .
Shares in Asia and Europe took their cue from this rally and opened strongly, driving the MSCI World Equity Index, which tracks stocks in 47 countries, 0.4 percent higher. The index had already spiked 2.3 percent in the previous session, rising by a 22-month low hit on Christmas Eve.
"The relentless sales that led to Christmas were heartily stopped when US stock markets recorded significant gains," said Stephen Innes, a trader at the online FX broker OANDA.
He partially awarded the rally to a Mastercard Inc report that sales during the US holiday season increased most in six years in 201[ads1]8, and helped remove concerns about the health of the US economy.
"The increase in online purchases during the holidays should be a reminder that the markets never underestimate the purchasing power of the US consumer," Innes said.
There were also some attempts by the White House to temper their broad side towards the Federal Reserve. Kevin Hassett, director of the White House Financial Advisory Council, said on Wednesday that Fed's job Jerome Powell's job was not in danger.
However, the rally fell slightly in Europe where stocks opened higher 0.5 percent, and then most of the early gains deleted. France's CAC index and Spain's Ibex were 0.3 percent higher while a pan-European stock index was flat, lowered by Italian stocks.
Milan was hit by renewed concern over the country's banking sector after lender Banca Carige was denied a cash call by his biggest shareholder.
The news weighed on Italian government bonds and slowed down a month long rally and pushing 10 -year gives higher in the day.
Earlier, MSCI's widest Asia-Pacific stock index outside Japan increased 0.6 percent and away from eight-week decline, while Japan's Nikkei managed to withdraw from the bear market, closing 3.9 percent higher.
Australian shares jumped 1.9 percent.
But Chinese stocks did not participate in the rebounds, with mainland shares and Hong Kong down 0.4 percent. Revenue in China's industrial companies fell in November for the first time in almost three years
Oil is not good
Concern over a dizzying global economy and signs of crude oil glut pushed oil prices, and sent Brent futures 2.4 percent lower to $ 53.26 per barrel and partially reverse the previous day's 8 percent jump.
Wednesday's rise was triggered by the Organization for Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreeing to limit production by 1.2 million barrels per day (bpd) from January.
U.S .. Treasury reversed direction after increasing sharply on Wednesday, and fell three basis points to 2,765 percent.
Another safe haven, gold, was up 0.4 percent, just below a six-month peak hit earlier this week.
The dollar gave up some of its overnight stays gains, but losses were limited to around 0.3 percent against a basket of currencies. Against the yen, a perceived safe haven, it was 0.5 percent at 110.82 yen.
It had risen nearly 1 percent overnight, and ordered its biggest one-day gain against the yen since late April.
Reporting Abhinav Ramnarayan; Editing Toby Chopra