World stock markets hit a new all time high
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.