On Friday, World shares gained as Wall Street opened higher with U.S. tax legislation enthusiasm, and the dollar strengthened as trading slowed before the Christmas and New Year holidays.
MSCI’s gauge of world stocks grew by 0.16 percent following the week’s central bank meetings that resulted in the U.S. Federal Reserve raising interest rates for the third time this year, while the European Central Bank and the Bank of England held off on raising rates.
The Dow Jones Industrial Average increased by 125.21 points, or 0.51 percent, to 24,633.87 and the S&P 500 increased by 16.99 points, or 0.64 percent to 2,669. The Nasdaq Composite increased by 38.09 points, or 0.56 percent to 6,894.62. Wall Street equities were driven by gains in consumer stocks including Costco Wholesale who rose 3.75 percent following the news of positive results.
On Thursday, the S&P 500 has its largest one-month loss following Republican Senators Marco Rubio and Mike Lee declining to support the bill without changes to child tax credits. “What Rubio was looking for is more help for the lower-income people, child tax credits. That’s something that can easily be adjusted, so the bill will move forward,” said Andre Bakhos, managing director at an investment firm.
Europe’s STOXX 600 dropped 0.38 percent, while a 12.68 percent fall in the fashion goliath H&M and a 6.38 percent fall for the Italian luxury goods firm Ferragamo alarmed retailers.
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Emerging market stocks dropped 0.32 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan showed a loss of 0.42 percent.
Japan’s Nikkei stock index closed 0.6 percent down at its lowest in over a week, with mobile companies postponing a selloff on the fear of more competition following the e-commerce group Rakuten stating that its goal is to become the fourth wireless carrier in the country.