Global Markets - Stocks rise on China hopes; sterling rebounds as Brexit vote fails

Major world stock markets climbed on Tuesday on hopes of more stimulus for China`s economy, while sterling rebounded from the day`s lows after British lawmakers defeated Prime Minister Theresa May`s deal on withdrawing from the European Union.

Sterling rallied more than a cent to stand above $1.28 after the vote. It was last trading at $1.2875, up 0.09 percent on the day.

May`s crushing loss, the first British parliamentary defeat of a treaty since 1864, marks the collapse of her two-year strategy of forging an amicable divorce maintaining close ties to the EU after the March 29 exit.

"After the big defeat, which was even larger than what the market had expected, we might getting closer to a no-Brexit scenario. The pound has retraced some of its losses after that vote, which was not unexpected. It may also simply be short-covering," said Eric Stein, co-director of global income group at Eaton Vance in Boston.

"There is still a massive amount of uncertainty for U.K. assets," he said.

U.S. Treasury yields edged higher in choppy trading on expectations for some kind of resolution on Brexit despite the parliament`s rejection of May`s deal.

Helping sentiment on Wall Street, U.S. President Trump talked up chances of a China trade deal and Chinese officials hinted at more stimulus for their slowing economy.

Data on Monday showed China`s exports unexpectedly fell the most in two years in December, while imports also contracted sharply.

"Any move to stabilize the global economy by the Chinese should be viewed positively by the U.S. as well," said Chris Zaccarelli, Chief Investment Officer, Independent Advisor Alliance in Charlotte, North Carolina.

A 6.5 percent gain in shares of Netflix after it said it was raising rates for its U.S. subscribers also lifted stocks. JPMorgan Chase & Co `s shares ended up slightly despite reporting a lower-than-expected rise in quarterly profit and revenue, hurt by weakness in bond trading.

The Dow Jones Industrial Average <.dji> rose 155.75 points, or 0.65 percent, to 24,065.59, the S&P 500 <.spx> gained 27.69 points, or 1.07 percent, to 2,610.3 and the Nasdaq Composite <.ixic> added 117.92 points, or 1.71 percent, to 7,023.83.

The pan-European STOXX 600 index <.stoxx> rose 0.35 percent and MSCI`s gauge of stocks across the globe <.miwd00000pus> gained 0.82 percent.

Germany reported its weakest growth in five years, causing the euro to decline against the dollar.

The euro was last down 0.57 percent, at $1.1409, while Europe`s broad FTSEurofirst 300 index <.fteu3> added 0.47 percent, to 1,373.38.

In commodities, oil prices rose about 3 percent supported by China`s plan to introduce policies to stabilize a slowing economy. Brent crude rose $1.65, or 2.8 percent, to settle at $60.64 a barrel. U.S. crude futures ended $1.60, or 3.2 percent, higher at $52.11 a barrel.

In the Treasury market, benchmark 10-year notes last fell 1/32 in price to yield 2.713 percent, from 2.71 percent late on Monday.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)