Dollar heads for worst week in five as stocks cheer record streak
Emerging market stocks were buoyant too as another 0.2% rise set their latest 6-year peak
World stocks advanced for a fourth straight day yesterday on expectations of broad-based global growth, while the dollar was on course for its worst week in five as investors awaited US inflation data.
MSCI’s world equity index, which tracks shares in 47 countries, was up 0.1 per cent after hitting record highs on Thursday.
Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan hit a 10year high.
European shares rose to their highest level in nearly four months, helped by some wellreceived earnings updates. The pan-European STOXX 600 rose 0.3 per cent and was set for its fifth straight week of gains as were world stocks.
Germany’s DAX index was up 0.1 per cent, just below an all-time high hit in the previous session, while Britain’s FTSE eased back 0.1 per cent after a record close on Thursday.
“We’re seeing positive economic news even in the midst of so called geopolitical risk, I think investors are generally more optimistic right now,” said Craig Erlam, senior market analyst at OANDA, referring to strong corporate earnings.
“Earnings in the second quarter were very positive, and looking beyond the impact of hurricanes, it seems like there’s improved fundamentals in the US and Europe.” Emerging market stocks were buoyant too as another 0.2 per cent rise set their latest 6-year peak.
In currencies, the dollar stayed on the defensive after minutes from the last US. Federal Reserve meeting showed policymakers remained divided on US inflation prospects.
The index which measures the greenback against a basket of six major currencies was flat ahead of consumer price inflation data, due at 1230 GMT.
Meanwhile, the euro was flat but still set for its biggest weekly rise in a month.