TThe FTSE 100 climbed 1.2 pc to 7,107.36 points, with global equities hitting a new record.
The sharp 0.3% drop in the pound after this morning’s gains may have boosted the index as a cheaper pound helps exporters, but the rise in equities is now benefiting global markets in their wake. together. MSCI’s largest index on global stock markets rose 0.3% to record high, led by large gains on major European indices, Stoxx Europe 600 extending gains to trade higher by 1.1%. Germany Dax jumped 1.6% while Frances Cac also recorded a 1% increase.
“Although global equities are now around 20% above pre-pandemic highs, the combination of strong earnings growth and reasonable valuations versus still low bond yields portends a further rise stocks, ”said Mark Haefele, chief investment officer, UBS Global Wealth Management. .
Across the pond, futures on the Dow and S&P 500 nearly hit record highs, poised to extend last week’s strong gains, with investors betting on economically sensitive stocks benefiting the most. of a post-Covid-19 recovery.
The S&P 500 hit 0.6 pc from its high last week despite rising inflation levels in the United States. The Federal Reserve reassured markets that it would keep rates low and monetary policy loose rather than risk tightening support levels prematurely.
Traders are now looking to U.S. wages on Friday: Job creation statistics are seen as a key measure of the strength of the U.S. recovery, manufacturing and services data due to be released before that date also offers insight. information.
“For the moment, [investors] embrace economic data that shows improvements in the economy and ignore data that suggests it will lead to much higher prices and shortages that affect specific businesses, ”said Rick Meckler, partner at Cherry Lane Investments at New Vernon, New Jersey.
“The main driver of the stock market is the reopening of the country … which motivates investors to feel a sense of optimism in the markets and makes them come back and buy stocks with the idea that things will be better by then. fall and incomes will improve. “