Global equity benchmarks rose to new record highs and oil prices rose on Wednesday as investors moved into riskier assets in anticipation of further U.S. stimulus under the new Biden administration to mend the economic damage of the coronavirus pandemic.
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LONDON (Reuters) - China’s $16 trillion bond market is the proverbial elephant in the investment room. But it’s becoming too big to ignore, even for the most risk-averse Western investors.
FILE PHOTO: Chinese Yuan banknotes are seen behind illuminated stock graph in this illustration taken February 10, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
A large, A+ rated sovereign market that pays 3% yields, with minimal volatility? It’s looking increasingly alluring for European pension funds swimming in sub-zero bond yields as aging populations stretch their finances.
For some, the benefits are beginning to outweigh the political risks, and they are upping allocations to China, or considering doing so, according to Reuters’ interviews with half a dozen firms that advise and manage money for pension funds.
Italy's benchmark borrowing costs rose back higher on Wednesday after experiencing some brief relief in morning trading following the government winning a confidence vote in the senate and averting a collapse.
China's $16 trillion bond market is the proverbial elephant in the investment room. But it's becoming too big to ignore, even for the most risk-averse Western investors.
Breakingviews
3 Min Read
Trainees learn how to build and operate an EUV machine at the training center at ASML Holding in Tainan, Taiwan, August 20, 2020.
LONDON (Reuters Breakingviews) - ASML’s share price swells when computer chips shrink. It’s been a fairly reliable relationship in recent years, sending the semiconductor equipment manufacturer’s market value to 191 billion euros. Yet the Dutch company may struggle to live up to the resulting puffed up valuation.
The Veldhoven-based group sells lithography machines to chipmakers like Intel and TSMC. These bits of kit, which can cost over 100 million euros each, allow the manufacturers to print tiny designs onto the surface of chips using projected light patterns. ASML’s so-called extreme ultraviolet machines, which are at the vanguard of making semiconductors smaller and faster, helped revenue grow by 18% last year. Chief Executive Peter Wennink is expecting “double-digit” growth this year as well, according to full