NEW YORK -- World stock markets mostly rose Tuesday, extending the previous day’s rally as fears receded over a potential clash between the United States and North Korea.
Investors have cashed out of haven assets, like gold and the Japanese yen, and ploughed back into riskier assets like equities, with the US dollar also gaining ground.
Asian stocks extended a relief rally into a second day, after Pyongyang appeared to put on ice its plan to launch missiles near Guam, and after a strong showing on Wall Street overnight.
Europe followed suit, with Frankfurt also emboldened by news that the German economy grew 0.6 percent in the second quarter. That, however, marked a slowdown from the 0.7 percent expansion in the first quarter.
“The rhetoric between the United States and North Korea appears to have softened somewhat, helping risk market sentiment,” NFS Macro analyst Nick Stamenkovic told AFP.
“In addition, robust German second-quarter GDP data highlights the favorable fundamental backdrop for European equities.
“Indeed, it appears investors have perceived last week’s sell-off as an opportunity to raise exposure to stocks.”