World stocks edge above Nov 2020 lows, sterling recovers some ground - Reuters

LONDON/HONG KONG, Sept 27 (Reuters) - World stocks picked up from 21-month lows on Tuesday and sterling rallied after hitting record lows versus the dollar a day earlier on UK plans for tax cuts, as market slides ran out of steam.

S&P futures bounced 0.94% after Wall Street fell deeper into a bear market on Monday, benchmark 10-year Treasury yields dipped from the previous session's 12-year high and the dollar eased from 20-year highs on a basket of currencies.

The MSCI world equity index (.MIWD00000PUS) rose 0.29% after hitting its lowest since Nov 2020 on Monday.

The British currency recovered 4.6% from that low to $1.0801 on Tuesday.

The yield on five-year gilts rose as much as 100 basis points in two trading days, though it slipped off the highs on Tuesday.

bond yields dropped 3.2 bps after reaching a high on Monday of 3.933%.

The dollar index eased 0.13% to 113.72, after touching 114.58 on Monday, its strongest since May 2002.

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The head of the World Trade Organization told Reuters on Tuesday that she expects that global trade forecasts will be revised lower from the current 3% for 2022, citing the ongoing Russia-Ukraine war and related food and energy crises.

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