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 impact of US tariffs.
“The Chinese over the summer increased monetary stimulus for the system and may do more, though their ability going forward is going to be limited,” said Francois Savary, chief investment officer at wealth manager Prime Partners.
Oil prices eased off four-year highs above $82 hit on Tuesday but were still set for a fifth consecutive monthly quarter of gains, driven by a looming drop in Iranian exports in the last quarter of the year when global demand heats up.