Stocks rally amid bets on China revival

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Stocks rally amid bets on China revival
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Unexpected growth in US services sector data drives Wall Street higher

A woman holds an umbrella while passing the Nasdaq MarketSite in New York's Times Square. Picture: REUTERS

The Nasdaq set fresh closing highs, led by Amazon.com as its shares crossed $3,000 for the first time. Tesla jumped 13.5%, up 228% so far this year. The euro advanced 0.55% to $1.1310 and European shares jumped. The broad FTSEurofirst 300 index added 1.53% as stocks exposed to China — carmakers, industrials, energy firms and luxury goods makers — rose strongly. Banks also rallied.

Chinese blue chips jumped 5.7% on top of a 7% gain last week to their highest since June 2015. Even Japan’s Nikkei, which has lagged due to a soft domestic economy, rose 1.8%. A slew of upbeat US data, including a record rise in June payrolls last week, has powered the Nasdaq to fresh highs and lifted stock markets around the world on recovery hopes.

The benchmark 10-year yield was up 0.1 basis points to yield 0.6808%. German 10-year yields traded at -0.469%.

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