On Tuesday, the stock rally across the globe shows no signs of slowing down, as optimistic investors drove the most widely monitored index of global stocks higher for a ninth consecutive day and blowing past the 500 point barrier. The most recent surge came as Japan’s Nikkei recorded its highest level since 1992, Gernany’s DAX notched in a record high and the rest of Europe increased as oil prices gained to a two and half year highs.
All three of Wall Street’s major indexes had closed at record peaks overnight too and the now 500-point MSCI 47-country ‘All World’ index .MIWD00000PUS, gained 0.2 percent having climbed nearly 20 percent in 2017.
“You’ve had almost a perfect backdrop for equities,” stated Pictet Asset Management’s global strategist Luca Paolini. “You have acceleration in nominal growth, earnings are between 10-15 globally and whatever you look at is pretty much in double digits,” he added.
Oil prices held on to their gains after reporting the largest increase in six weeks after the Saudi moves, which had reported the crown prince tighten his grip on power and spark tensions between the United Kingdom and Iran.
U.S. crude CLc1 eased at $57.24 in Europe after gaining as high to $57.69 and Brent crude futures LCOc1 were at $64.04 after hitting a peak of $64.65 a barrel. The dollar index that monitors the greenback versus a basket of six major currencies increased 0.3 percent to top the 95 points mark.
A moderate increase in U.S. yields as supported the U.S. currency. The benchmark 10-year yield US10YT=44 steadied at 2.328% compared to $2.320%, on Mondays close in the US, when it dropped to its lowest levels in almost two weeks. It was at a seven-month high of 2.47 percent last month. Germany’s 10-year bond yields also hovered near two-month lows following the ECB had tightened up its plans to reinvest the proceeds of its 2.4 trillion euro stimulus program.
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On Monday (11/6/17) the Fed confirmed that William Dudley, monetary policymaker is set to retire in the middle of the next year, leaving a rare opening for a leadership position with the U.S central bank.