- Shares traded on a record high on Friday after a thumping election win by Tory's win, clearing one the darkest clouds on the global investment horizon.
- The safe-haven sovereign bonds and the Japanese yen received their dose of relief.
- Oil prices rallied on hopes a trade deal would support global growth and thus demand.
Shares traded on a record high on Friday after a thumping election win by the Conservative Party win. The victory has cleared two of the darkest clouds on the global investment horizon.
The safe-haven sovereign bonds and the Japanese yen received their dose of relief. They led markets to lower the chance of more rate cuts globally.
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“Global investors have been given two of the biggest gifts on their Christmas list and should be appreciative for a while at least,” said Sean Callow.
Sean Callow is a senior forex analyst at Westpac.
“Global equity indices such as MSCI World should set more record highs, and sterling could push above $1.36,” he added.
Europe’s pan-regional STOXX 600 share market seemed set to open almost 1.5% higher on the twin boosts.
In Asia, Japan’s Nikkei climbed 2.5% to a 14-month top, while Shanghai blue chips advanced 2%.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 1.5% to its highest since late April.
E-Mini futures for the S&P 500 rose 0.4% to another peak, though London’s futures were only up a modest 0.2%. Perhaps because a Conservative win had already been priced in, but also because a stronger pound makes British firms’ international earnings look less impressive.
On Thursday, Wall Street had celebrated the trade news with record highs.
The Dow ended Thursday up 0.79%, while the S&P 500 gained 0.86% and the Nasdaq 0.73%.
That was bad news for bonds, and yields on U.S. 10-year Treasuries shot up to 1.91%, a rise of 12 basis points in just two sessions.
Spot gold was flat at $1,467.60 per ounce.
Oil prices rallied on hopes a trade deal would support global growth and thus demand.
The U.S. crude added 31 cents to $59.49 a barrel, while Brent crude rose 42 cents to $64.62.