World shares at all-time highs

On Friday Wall Street made strong gains, with the S&P 500 index closing at a record and global shares also finished at an all-time high, while oil prices gained for a fifth straight week.

Weaker-than-expected inflation data and news that U.S. President Joe Biden has obtained a cross-party infrastructure deal with lawmakers gave a rise to stocks. The plan is estimated at $1.2 trillion over eight years, of which $579 billion is new spending.

The S&P 500 gained 2.7% for the week, its strongest weekly gain since early February as Nike and bank stocks were positive, and weaker-thanexpected inflation data alleviated concerns about a swift reduction in stimulus by the Federal Reserve.

MSCI’s gauge of stocks across the globe closed at a record high of 721.91. European shares were boosted from the financial and materials sectors, while Credit Suisse gained after a Reuters statement saying that it was considering a prospective merger with UBS.

The pan-European STOXX 600 was up 0.1%, ending the week with gains of 1% following sharp swings on worries of higher inflation hurting real income and pushing central banks to increase interest rates earlier than estimated.

With the U.S. Federal Reserve sending out mixed messages during the week on how much it would let inflation run, a weaker-than-expected reading on latest U.S. personal consumption expenditures data alleviated concerns about an unexpected tightening in stimulus.

London's FTSE 100 also rose on Friday. The European banking index gained 0.6% and closed the week with gains of about 2% as investors returned to economically sensitive sectors. Other so-called value stocks including miners and energy were also among the top performer during the week.

Emerging market stocks gained 0.89%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed about 1% higher, while Japan’s Nikkei gained 0.66%.

Oil prices increased for a fifth week after climbing to their highest since October 2018, on prospects that demand growth will exceed supply and OPEC+ will be careful in returning more crude to the market from August.

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.