Global stock indices were trading mostly higher around midday Tuesday, buoyed by a weaker Hurricane Irma and no evidence of further North Korea missile tests. Most indices were stronger, with the exception of notable laggard, the FTSE 100.
The MSCI All-Country World Index built on Monday’s strong 0.9% gain, with a 0.1% increase so far Tuesday, marking a fifth consecutive increase. European stocks lifted the pan-European STOXX 600 index, while the German DAX and French CAC 40 both showed strong rises, too.
Although Hurricane Irma continues to batter the US Florida coast line, evidence that it is getting weaker is a positive development. Early recovery plans will also likely go into motion soon, all of which has given insurers and travel companies a much-needed boost.
Elsewhere, the national holiday in North Korea didn’t result in any further missile testing, providing a further dose of good news for global investors. The ongoing rhetoric between US president Donald Trump and Pyongyang had previously fuelled investor fears, encouraging a rise in selling.
“The absence of walking into any North Korea-related headlines, the general feeling that the worst-case scenario from Hurricane Irma was avoided…, markets seem to have breathed a collective big sigh of relief,” Deutsche Bank AG strategists wrote in a note to clients.
That combination also bodes well for Wall Street. S&P 500 Futures trading has been positive, with the index likely to open at a fresh all-time high on the better headlines. The Apple iPhone X release later Tuesday is poised to give US stock indices a boost, too. Tech stocks are trading well so far.
It wasn’t only stock markets that were more upbeat Tuesday, the US dollar gained ground ahead of key data releases later in the week. If they prove positive, it sets the scene for US Federal Reserve Bank tightening and higher rates, something currency investors will benefit from, when it comes to pass.