LONDON: The 2018 global equity rally continued apace Friday, with Asian and European markets posting healthy gains and Wall Street also grinding higher once again.
A lower-than-forecast rise in the US payroll, reported ahead of Wall Street’s open, barely put a dent in investor enthusiasm.
“After a soft start to the New Year the bulls have come charging back for European equities with the large gains seen in recent sessions,” said David Cheetham, chief market analyst at xtb.
“The US stock market has been in an incredible rally since the 2016 election and the gains continue to underpin the global rally in stocks,” he said.
The Dow showed small gains approaching midday in New York, as it, yet again, advanced relentlessly into uncharted territory.
“US stocks continue to notch fresh record highs and the Dow (is) holding north of the 25,000 mark that it breached for the first time yesterday,” said analysts at the Charles Schwab brokerage.
All main European markets were higher at the close, with standout Frankfurt clocking up a gain of just under 1.2 percent despite a share price plunge for heavyweight Deutsche Bank after a profit-warning.
Paris followed not far behind with a 1.1 percent rise.
London hit a new intra-day record peak at 7,727.73 points, and also set a new closing high, buoyed by the weak pound which lifts the share prices of multi-national companies.
In Asia on Friday, Tokyo stocks ended up 0.9 percent at a 26-year high following its more than three percent jump Thursday, while Sydney added 0.7 percent.
Seoul rose 1.3 percent, with dealers buoyed by news that North Korea had accepted the South’s offer of talks next week, further easing geopolitical tensions in the region.
Hong Kong gained 0.3 percent to chalk up a ninth-straight gain.
– ‘Economic strength’ –
Equity optimism has been fuelled by US tax cuts, healthy corporate profits and strong manufacturing figures worldwide.
Greg McKenna, chief market strategist at AxiTrader, said in a note that data from the manufacturing and services sectors “suggests economic strength across the globe remains robust”.
He noted that an index of world factory activity was at its highest level in seven years.
While oil prices inched down, they remain elevated after recent rises to around three-year highs thanks to Middle East tensions.
Crude futures have also been boosted this week on keen US demand as the nation’s stockpiles fall on the back of a severe cold snap.
Source: Brecorder.com
