World stocks reach record high

World stocks hit record highs on Tuesday, supported by strong economic data from China and the United States, while currency and bond markets paused for breath after a month of rapid gains in the dollar and Treasury yields.

Equities as measured by the 49-country spanning MSCI All Country World Index hit an all- time high as European stocks played catch- up with gains in Asia and Wall Street overnight in their first trading session since the Easter holiday.

The pan- European STOXX 600 index hit a record high after the open in Europe. Profit- taking pushed Japan’s Nikkei down 1% and dragged on the Shanghai Composite. The S& P 500 closed Monday at a record peak and futures dipped 0.2% on Tuesday.

On the heels of a bumper U. S. jobs report on Friday, March data showed services activity hit a record high. China’s service sector has also gathered steam with the sharpest increase in sales in three months.

The yield on benchmark 10year U. S. Treasuries fell to 1.7093%, while the U. S. dollar has mostly missed out on a big bounce from the strong data and held at $1.1819 per euro a day after posting its steepest drop since midMarch.

Minutes from the March meeting of the U. S. Federal Reserve, due on Wednesday, are the next focus for bond markets, although they will not address the most recent data surprises and markets have run far ahead of Fed projections for years of low rates.

Currencies were fairly quiet through the Asia session, and hung on to small gains on the dollar. The Australian dollar traded at $ 0.7647 after the central bank held policy settings steady, as expected.

The yen was a fraction softer at 110.21 per dollar, while sterling touched a twoand- a- half week high of $1.3919. The dollar’s wobble helped oil prices recoup some losses suffered on Monday on worries a new wave of COVID- 19 infections in Europe and India could curtail energy demand.

Brent crude futures rose 1.4% to $62.98 a barrel while U. S. crude climbed 1.5% to $ 59.56 a barrel. Gold tacked on 0.2% to $1,732 an ounce.

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.