World stock mar­kets hit a new all time high

The Malta Business Weekly - - FRONT PAGE -

Dow Jones +12.17 22,842.85 MSCI’s All-World stocks in­dex, which tracks 2,400 com­pa­nies around the globe, inched up to 493.31 points yes­ter­day morn­ing.

That’s partly due to the Nikkei’s surge to a two-decade clos­ing high in Ja­pan yes­ter­day.

The rally in Span­ish stocks and bonds yes­ter­day morn­ing also helped.

David Meier, econ­o­mist at Julius Baer, says the news that Cat­alo­nia plans to ne­go­ti­ate with Madrid, rather than im­me­di­ately trig­ger in­de­pen­dence, is re­as­sur­ing in­vestors.

He writes: “This episode could serve as a de­ter­rent for other in­de­pen­dence move­ments in Spain and Europe rather than lead to a rise in break-up risks. Mar­kets rightly main­tain their calm.”

The global mar­ket rally also owes a lot to US stocks, which have racked up a string of record highs this year. The Dow Jones in­dus­trial av­er­age has gained more than 20% since Don­ald Trump won the US elec­tion last Novem­ber, even Shang­hai +5.30 3,388.28 though his prom­ises of tax re­form and in­fra­struc­ture spend­ing are still on the ‘To Do’ list. Hang Seng -101.26 28,389.57

Re­lief over Cat­alo­nia has also pushed the euro to a two week high, at $1.184 against the US FTSE 100 -6.69 7,531.58 dol­lar.

Span­ish bonds are also re­cov­er­ing.

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