Global shares reach an all-time high

World shares rose on Friday, reaching an all-time high on a better-than-expected U.S. monthly jobs report that signaled a strong end to the second quarter in the world’s largest economy. Data showed U.S. job growth increased in June as nonfarm payrolls rose by 850,000 jobs after rising by 583,000 in May, although the unemployment rate increased to 5.9% from 5.8% the previous month. Economists had predicted payrolls increasing by 700,000 jobs.

The MSCI All Country World index rose 0.39%. On Wall Street, the S&P 500 and Nasdaq reached record levels. European shares ended slightly higher on a raise from chipmakers, although gains were limited by weak bank stocks and growing concerns over the Delta variant of the coronavirus.

The STOXX 600 ended the week slightly lower as investors feared that the new variant could hurt an ongoing economic recovery. Data showed producer prices in the bloc increased more than anticipated in May on a rise in energy prices. Travel and leisure gained 1.6% but lost 1.4% through the week as virus-related restrictions on the UK hurt sentiment.

Bank stocks dropped 1.3% and were the worst performers, as growing worries over the new, highly contagious COVID-19 variant kept investors firmly in fixed income and reduced yields. The bank sector trailed its peers for the week with a 2.4% loss. Still, it is the best performing euro zone sector so far this year, as rising inflation expectations had pushed borrowing costs higher earlier in the year.

Spot gold prices rose 0.27%, to $1,781.31 an ounce. Oil prices were lower after OPEC+ ministers delayed an output policy meeting, with sources saying the United Arab Emirates had flinched at proposals that included raising supply by 2 million barrels per day by the end of the year. Brent crude was last up 0.05%, at $75.88 a barrel. U.S. crude was last down 0.48%, at $74.87 per barrel.

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.