Techs lead stocks rally

> MSCI’s global equity index gains 0.2% to its highest level ever

LONDON: A strong rally in the technology sector helped drive global stocks to a record high yesterday, while a recovery in Spanish markets supported European shares after an opinion poll smoothed investors’ concerns over Catalan secession.

MSCI’s world equity index, which tracks shares in 47 countries, rose 0.2% to its highest ever level. The index has surged 17.7% so far in 2017, and is on track for its best annual showing since 2013.

Eurozone stocks climbed 0.3%, holding near their highest level in 10 years. European stocks have rallied this year as a healthy economy dovetailed with convincing growth in corporate earnings and a reduction in political risk.

“There is an avalanche of things that are happening or going to happen, but markets are just shrugging it off. It’s like markets have been vaccinated against bad news thanks to the strength of the global business cycle,” said Marie Owens Thomsen, global head of economic research at Indosuez Wealth Management in Geneva.

Spanish stocks extended gains, up 2% and set for their best day in three weeks after a weekend poll suggested Catalan secessionists may lose their majority in regional elections scheduled for December.

Technology stocks also drove European trading, riding a wave of gains on the Nasdaq and in Asia after Apple said preorders for its new iPhone X were “off the charts”.

Meanwhile, Wall Street stocks were mostly lower in early trading.

About 20 minutes into trading, the Dow Jones Industrial Average was down 0.2% to 23,379.67.

The broad-based S&P 500 dropped 0.2% to 2,576.37, while the tech-rich Nasdaq Composite Index added 0.1% to 6,709.19.

Earlier yestersay, Asian stock markets were largely flat as investors locked in gains on earnings reports and braced for key Japanese and US central bank announcements.

Tokyo stocks ran out of steam to close virtually flat, while Hong Kong ended the day 0.4% down. Shanghai fell 0.8%.

Sterling rose 0.5% against the dollar as traders bid the currency higher on the expected rate rise.

Other major currencies kept to tight ranges as markets also awaited interest rate decisions by the Bank of Japan and the US Federal Reserve.

The dollar fell 0.3% against a basket of currencies as investors focused on the impending appointment of the next Federal Reserve chair. An announcement is expected this week.

Gold edged down 0.1% on investor caution. – Reuters, AFP