Global Stocks Hit 6-Month High

World shares hit their highest levels in more than six months on Friday as investors took the view that the latest exchange of tariffs between the United States and China may be less damaging than initially feared.

European stocks strongly extended a relief rally that began on Wall Street overnight and ran through Asian markets, with the pan-European index up 0.4%. EU Futures indicated a higher open on Wall Street, Reuters reported.

A rally in Chinese markets helped lift the MSCI’s broadest index of Asia-Pacific shares outside Japan 1.27%, partly on expectations that Beijing will pump more money into its economy to weather the trade war. The index has risen 4.6% from a 14-month low on Sept. 12.

The CSI 300 index of Shanghai and Shenzen shares, which fell to a two-year low last week, rose 3%, putting it on course for its largest weekly gain for more than two years. And Japan’s Nikkei rose 0.8%, hitting an eight-month high.

The broad strength across markets helped MSCI’s All-Country World Index, which tracks shares in 47 countries, hit its highest level since March 13. The index was last up 0.4% on the day, and was set to post its biggest weekly gain since early May.

On Wall Street, trade-sensitive industrial stocks led the gains on Thursday. The Dow Jones Industrial Average rose 0.95% while the S&P 500 gained 0.78%, both hitting record highs.

The latest rally came after new US and Chinese tariffs on each other’s goods were set at lower rates this week than previously expected, raising hopes that row between the world’s two largest economies may be easing.