World stocks index breaks 500 barrier as oil hits 2.5-year high
NEW YORK (Reuters) – The global rally in stocks showed no sign of slowing on Tuesday, continuing a nine-day advance that sent the most widely tracked index of world stock markets to record highs.
The latest leg of the run came as Japan’s Nikkei hit its best level since 1992, Germany’s DAX scored a record high, and Monday’s two-and-a-half-year top in oil prices again boosted European resources stocks.
All three of Wall Street’s major indexes opened at alltime highs, while the MSCI 47-country All World index added 0.2% to top 500 points, a record high. The index is up nearly 20% for the year to date.
“You’ve had almost a perfect backdrop for equities,” Pictet Asset Management global strategist Luca Paolini said. “You have acceleration in nominal growth, earnings are between 10-15 [percent higher] globally, and whatever you look at is pretty much in double digits.”
After hitting all-time highs, the Dow Jones Industrial Average fell 7.2 points, or 0.03%, to 23,541.22, the S&P 500 lost 0.05 points, or 0.00%, to 2,591.08, and the Nasdaq Composite dropped 16.36 points, or 0.24%, to 6,770.08
The only bears remained in the Gulf, as nervousness around the weekend purge of royals and officials in Saudi Arabia sent its stock market down again and Kuwait’s bourse tumbled more than 4%.
Oil prices, meanwhile, held most of their gains after posting the biggest rise in six weeks following the Saudi crown prince’s move to tighten his grip on power and crank up tensions between the kingdom and Iran.
US crude drifted back to $57.24 in Europe after reaching as high as $57.69, and Brent crude futures were at $64.04 after touching a peak of $64.65 a barrel.
The dollar was also on the move amid signs of more change at the Federal Reserve, while President Donald Trump’s Republican party pushes ahead with its tax-cut program.
The dollar index rose 0.34%, with the euro down 0.37% to $1.157 – the single currency’s lowest since mid-July.
The Japanese yen weakened 0.35% versus the greenback to 114.09 per dollar, while Sterling was last trading at $1.3139, down 0.24% on the day.
The Mexican peso lost 0.71% versus the US dollar to 19.15. The Canadian dollar fell 0.77% versus the greenback to 1.28 per dollar.
Benchmark US Treasury 10-year notes last rose 2/32 in price to yield 2.3145%, from 2.32% late on Monday.
The 30-year bond last rose 12/32 in price to yield 2.7786%, from 2.796% late on Monday.
Germany’s 10-year bond yields held near two-month lows at 0.338%, after the European Central Bank firmed up its plans to reinvest the proceeds of its €2.5 trillion stimulus program.