Global equities almost rose on Thursday, London hit a pre-pandemic high, and S & P set a new optimistic record after the Federal Reserve emphasized its commitment to record low interest rates. It was.
London’s benchmark FTSE 100 Index soared to 6,942.22 points at the end of the transaction. This is the highest daytime level in over a year.
In the euro area, Paris and Frankfurt have also expanded.
“The FTSE 100 has reached its highest level since the pandemic, as confidence in the global and UK economic recovery has increased,” Markets.com analyst Neil Wilson told AFP. Told.
The Asian market generally rose as traders were moved by the Fed’s minutes released on Tuesday, strengthening their willingness to keep borrowing costs at record lows over the long term.
“The optimism surrounding the recovery of the global economy, supported by the Federal Reserve Board’s mitigation measures, has boosted European stocks,” said Sophie Griffith, an analyst at OANDA.
“The minutes of the March (FRB) meeting didn’t reveal anything new, but the Fed’s repeated supportive stance seems to have been a tonic for the market.”
“The Fed’s promise to lower short-term interest rates in the event of a significant fiscal expansion means that it opens the door to the least resistance to equities,” Wilson said.
Initial claims for US unemployment allowances unexpectedly rose to 744,000 last week, and Wall Street rose most of the way, contrary to expectations of falling below 700,000.
The S & P 500 rose 0.3% in midnight trading, a record high, but the Dow fell slightly.
“The key point from the report is disappointing to convince the Fed that it must be patient before removing its policy response,” said Patrick J. O’Hare, a market analyst at Briefing.com. Labor market data. “
“That view tends to fit well into the equity market, which pleases the idea that the Fed won’t raise rates right away,” he added.
This may not bring significant profits to the equity market, but “it is this idea that market participants buy weaknesses and maintain the tendency of equity markets to highlight revolving trading activity.”
Traders were also monitoring the progress of US President Joe Biden’s huge infrastructure program.
The prospect of another huge spending surge coming shortly after his $ 1.9 trillion stimulus has passed added to expectations that the country is heading for blockbuster growth.
For now, traders are pleased to attend the rally as the coronavirus vaccination program progresses, allowing the economy to gradually resume in some areas, even if it is a little slower than in others. ..
Axis strategist Stephen Ines said, “Investors appear to be happy and willing to bet on the recovery in the coming months in the light of strong data in recent weeks, so short-term momentum continues. It seems to work in favor of the bulls. “
“In addition, equity volatility has remained low near the lowest levels since the pandemic began, helping to take risks.”
New York-Dow: 33,441.30 points flat
EURO STOXX 50: 0.5% increase at 3,977.83
London-FTSE 100: 0.8% increase at 6,942.22 (closing price)
Paris-CAC 40: 6,165.72 up 0.6% (closing price)
Frankfurt-DAX30: 0.2% increase at 15,202.68 (closing price)
Tokyo-Nikkei 225: 29,708.98, down 0.1% (closing price)
Hong Kong-Hang Seng Index: up 1.2% at 29,008.07 (closing price)
Shanghai Composite: 3,482.55, up 0.1% (closing price)
Euro / dollar: Up $ 1.1902 from $ 1.1868 to 2100 GMT
Pounds / $: $ 1.3737 unchanged
Euro / Pound: Rise from 86.39 pence to 86.63 pence
Dollar / yen: Fall of 109.26 yen from 109.85 yen
West Texas Intermediate: $ 59.32 / barrel down 0.8%
Brent North Sea Crude: $ 62.92 / barrel down 0.4%
London Hits Pre-Covid Peak, S&P Strikes Record High Source link London Hits Pre-Covid Peak, S&P Strikes Record High