Global stocks rise

Confidence that central bank policies will spur economic growth and a valuation call by Federal Reserve Chair Janet Yellen sent global equities rallying for the week, with benchmark indexes in the U.S. and Canada climbing to alltime highs. U.S. and European stocks rallied this week after the Fed said interest rates will remain low.

The Stoxx Europe 600 Index advanced 0.3 percent for the week, trading near the highest level since 2008. European Central Bank Vice President Vitor Constancio signaled on June 19 that large-scale asset purchases are the next step policy makers are prepared to take if the inflation outlook worsens. The comments came after ECB President Mario Draghi announced on June 5 new long-term refinancing operations and lowered interest and deposit rates for the euro area in an attempt to boost inflation.

The S&P 500 has climbed 1.4 percent this week. The index has closed higher six straight days, its longest streak since April.

An index of euro-area consumer confidence unexpectedly fell to minus 7.4 in June from minus 7.1 in May, according to a preliminary report from the European Commission.

Japan’s Topix index capped a fifth weekly advance, its longest stretch of gains in almost a year. The gauge rose 2 percent on the week, posting its longest winning streak since the five weeks ended July 19. Data showed fewer Americans filed applications for unemployment benefits last week.

The MSCI Emerging Markets Index slid 0.5 percent this week. Russia’s equities ended two days of gains as fighting erupted between Ukrainian government troops and insurgents.

A gauge of commodities led by oil and gold this week reached a 10-month high after the U.S. said it will send military advisers to Iraq as violence escalates in the OPEC producer. Brent crude is set for its second week of gains as the advance of Sunni fighters from a breakaway al-Qaeda group raised the specter of sectarian civil war in the nation. This article was compiled by Valletta Fund Management Limited, a member of the BOV Group.Valletta Fund Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000 Freephone: 80072344. E-mail: infovfm@bov.com. Website: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.