(Reuters) – Traders sold government bonds and bought stocks on Wednesday, placing riskier bets on optimism about U.S.-China trade and expectations of ample central bank stimulus before a key speech by the U.S. Federal Reserve chairman at Jackson Hole.
In early London trading, the yield on U.S. 10-year debt rose as high as 0.7190%, close to a two-month peak, as bond traders begin to price in a return to inflation and growth for major economies.
The broad Euro STOXX 600 turned positive in early trading to gain 0.2%, with indexes in Frankfurt and Paris both up a similar amount, though London fell 0.2%.
The MSCI world equity index, which tracks shares in 49 countries, gained 0.1%. Wall Street futures gauges were flat.