Fed-driven sentiment sends global shares near peaks
Global share markets placed near their record peaks, while U.S. bond yields remained stagnant near a three month low. Investors’ enthusiasm was mainly driven by expectations that the Federal Reserve would keep its dovish stance later this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan plunged 0.1%, while Japan’s benchmark Nikkei advanced 0.35%. China, Hong Kong, and Australia were off for a holiday; heavily capping Asia’s trading activity.
The MSCI all-country gauge of shares recorded a strong session to hit its all-time closing high on Friday. The S&P 500 and the pan-regional STOXX Europe 600 index also reached high grounds.
An acceleration seen in the global economy heavily supported world shares, while expectations that the U.S. Federal Reserve would remain accommodative fuelled investors’ risk appetite.