Stimulus buzz from China sets a modestly positive tone for world stocks

A Chinese equity bounce set a modestly positive tone for world stocks on Wednesday as bets that Beijing would expand stimulus to support its economy helped offset some of the worries about global trade tensions and $80-a-barrel oil.

World stocks were flat, not far off six-month highs.

However, European shares failed to extend gains seen in Asia where Shanghai-listed shares closed almost 1 per cent higher at eight-week highs. 
 

Chinese shares rose after global index provider MSCI said it could quadruple China’s weighting in global benchmarks, lending fresh impetus to a market already buoyed by expectations of state stimulus to offset the