Global shares hover near record highs as investors pause for breath
- Global shares hovered near record highs after climbing for five straight sessions.
- A run of better data recently has helped calm fears of a recession.
- The "phase one" Sino-U.S. deal on trade appears to have eased some of the uncertainty on the global outlook.
On Wednesday, Global shares hovered near record highs after climbing for five straight sessions.
The GBP nursed heavy losses in the wake of renewed Brexit uncertainty.
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Europe’s stock markets edged higher, having taken a hit the previous session as Boris Johnson made a harder line on Brexit.
Earlier, Asian shares had drifted lower, with Japan’s Nikkei dipping 0.6%. China’s stocks slipped even after Beijing trimmed another short-term interest rate.
U.S. equity futures barely budged.
A run of better data recently has helped calm fears of a recession while the “phase one” Sino-U.S. deal on trade appears to have eased some of the uncertainty on the global outlook.
MSCI’s world stock index stood just off record highs. It has rallied almost 23% this year, set for its best year in a decade and the fourth-best year ever.
Upbeat economic news had helped the S&P 500 reach a record for the fourth straight session on Tuesday, building on its 27% gain this year.
“I expect markets to end the year quietly but mildly positively, especially if the PBoC does nibble down the lending interest rate later this week,” said Chris Bailey referring to China’s central bank.
Chris Bailey is the European strategist at Raymond James.
“Bigger challenges naturally await for next year … but I think traders and investors will be happier to grapple with these actually in 2020.”
The latest survey of fund managers by BofA Global Research showed that a record surge in global growth expectations over the last two months had drastically cut recession worries.
Elsewhere, oil prices eased from three-month highs as data showed U.S. crude stocks rose unexpectedly in the most recent week.
U.S. crude fell 0.6% to $60.55 a barrel, while Brent crude futures lost 0.4% to $65.63.