On Wednesday, the party continued for world stocks as they reached new highs as European markets joined. Analysts believe these early indications reveal that the upcoming year global growth will endure.
Following Tuesday’s largest one day-gain in over two weeks, MSCI’s index of global stocks which tracks shares in 47 countries, was driven to new record highs. The pan-European stock index gained 0.2 percent following increases for their Asian and U.S. counterparts overnight as manufacturing surveys indicated a strong start for the European economy. U.S. stock futures also pointed to an additional higher open for Wednesday.
“Investors have woken up in the new year and looked forward to another firm year for global growth with very muted downside risk,” said economist Philip Shaw, warning that these are only the first two trading days of the year.
Shaw added, “The converse is the sell-off in bond markets: the idea that inflation pressures may be firmer than expected and central banks could take a slightly more aggressive approach than previously thought”.
As for Asian stocks, a record high for Philippines, a 24-year high for Thailand and a 10-year high for Hong Kong were reached MSCI’s index of Asia-Pacific shares outside Japan increased 0.4 percent, following Tuesday’s 1.4 percent gain.
Wall Street rang in the New Year with a series of record closing highs. The Dow gained 0.42 percent, the S&P 500 rose 0.83 percent and the Nasdaq gained 1.5 percent.
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Spotpot gold reached its highest level since the middle of September at $1,321.33, before falling back down to $1,317.32 per ounce.
Oil prices continued their rally, crawling towards Tuesday’s 2-1/2 year highs as healthy demand as well as the continuous efforts led by OPEC and Russia to cut production strengthened the market. Brent crude futures was up 0.6 percent at $67 a barrel, while U.S. crude futures gained 0.8 percent to $60.87 a barrel.