World shares hover near record highs
World stocks hovered just off record highs on Wednesday after climbing for five straight sessions, while Britain’s pound nursed heavy losses in the wake of renewed Brexit uncertainty.
Europe’s stock markets edged higher, having taken a hit the previous session as Britain’s Prime Minister Boris Johnson took a harder line on Brexit.
Earlier, Asian shares had drifted lower, with Japan’s Nikkei dipping 0.6%, while China’s stocks slipped even after Beijing trimmed another shortterm interest rate. U.S. equity futures barely budged.
A run of better data recently has helped calm fears of a recession while the “phase one” Sino-U.S. deal on trade appears to have eased some of the uncertainty on the global outlook. MSCI’s world stock index stood just off record highs. It has rallied almost 23% this year, set for its best year in a decade and the fourth-best year ever. Upbeat economic news had helped the S&P 500 reach a record for the fourth straight session on Tuesday, building on its 27% gain this year.
While few expect the Republican-dominated Senate to force Trump from office, the impeachment process could focus investors’ attention on next year’s U.S. election risks. Newlyelected British Prime Minister Boris Johnson has spooked markets by taking a hard line on Brexit talks. Johnson will use the prospect of a Brexit cliff-edge at the end of 2020 to demand the EU give him a comprehensive free trade deal in less than 11 months. The threat of a hard exit sent shivers through sterling, which slid 1.5% on Tuesday in its largest one-day fall this year. It fell another 0.2% on Wednesday. The currency has shed all the gains made during the Conservative Party’s big election win.
Elsewhere, oil prices eased from three-month highs as data showed U.S. crude stocks rose unexpectedly in the most recent week. U.S. crude fell 0.6% to $60.55 a barrel, while Brent crude futures lost 0.4% to $65.63.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.