For Thyagaraju Adinarayan and Tom Westbrook
LONDON / SINGAPORE, Oct 12 (Reuters) – Global stocks hit five-week highs on Monday, led by strong gains in China, as hopes for stimulus offset concerns about a surge in COVID-19 cases in Europe and the United States. United.
* European countries are studying new travel restrictions due to the increase in coronavirus cases, in contrast to Asia-Pacific nations such as Singapore, Australia and Japan, where a gradual lifting of some measures is underway.
* Despite everything, the markets of the United States and Europe advanced due to the hope of investors about more aid against the coronavirus in the North American country, whose government asked Congress on Sunday to approve a reduced relief plan.
* European stocks and Wall Street futures were up 0.5%. For their part, the British FTSE 100 index and the British pound were weak before the Brexit summit to be held this week.
* “Tax policy negotiations in the United States are starting to look like the divorce negotiations between the European Union and the United Kingdom: tedious and endless,” said Paul Donovan of UBS.
* MSCI’s global equities measure hit early September highs, driven mostly by a 3% advance in Chinese leading stocks.
* For their part, US markets were bracing for the third-quarter corporate earnings season, where S&P 500 firms are expected to report a 21% drop in earnings, according to Refinitiv data.
* In foreign exchange markets, the yuan was down 0.8% in onshore trading, at 6.7487 units per dollar, heading for its worst daily decline since March, after the People’s Bank of China withdrew a requirement on bank reserves, facilitating their depreciation.
* The euro was down 0.2% to $ 1.1805, and the yen was firming at 105.48 per dollar.
* In commodity markets, crude prices plummeted more than 1% and spot gold maintained Friday’s strong gains at $ 1,929 an ounce.
* The US bond market will be closed on Monday for the Columbus Day holiday.
(Edited in Spanish by Carlos Serrano)