Shares reach new records

Key world equity indexes reached new highs on Friday, boosted by a surge in U.S. housing starts to levels last seen in 2006, while the dollar rose to a one-week high against the euro on expectations of solid economic growth.

European shares clocked a record closing high after EU Trade Commissioner Phil Hogan struck a positive tone on talks with Washington and on optimism over signs of resilience in China’s economy.

The pan-European STOXX 600 index rose as much as 1% to a record high of 424.90, marking its best week since the 20 December. Hogan said on Thursday he had a good exchange of views with U.S. Trade Representative Robert Lighthizer in Washington, underscoring Brussels’ desire to negotiate solutions for several open trade disputes between the United States and the EU.

The meeting is a step forward in addressing long-standing issues such as a French digital tax and aircraft subsidies. It also added to investor optimism after the United States and China signed an interim trade deal earlier in the week.

MSCI’s gauge of stocks across the globe gained 0.41% to a record close. It was the benchmark index’s fifth straight day of new highs, and the biggest weekly percentage gain since September.

The three main indexes on Wall Street also hit intra-day and closing highs, while posting their biggest weekly gains since August.

China stocks rose as investors cheered further signs of resilience in the Chinese economy and the signing of the China-U.S. trade deal. China’s economy grew 6% in the fourth quarter, which reinforced signs of improving business confidence, though anemic domestic demand and the trade war slowed the growth rate to 6.1% in 2019, the slowest in 29 years.

Oil prices edged higher on concerns that slower growth in China could dent fuel demand. Brent crude futures rose 23 cents to settle at $64.85 a barrel. U.S. West Texas Intermediate futures settled up 2 cents at $58.54 a barrel.