World stocks break 500 barrier, oil camps at two-and-a-half year high

LONDON: The global rally in stocks showed no sign of slowing on Tuesday, as upbeat investors pushed the most widely-tracked index of world stocks up for a ninth straight day and it sailed past the 500-point barrier.
The latest leg of the run came as Japan’s Nikkei hit its best level since 1992, Germany’s DAX scored a record high and Monday’s 2-1/2 year top in oil prices lifted European resources stocks again.
All three of Wall Street’s major indexes were also preparing to reopen at all-time highs again as the now 500-point MSCI 47-country ‘All World’ index added 0.2 per cent to its almost-20 per cent rise for the year.
“You’ve had almost a perfect backdrop for equities,” said Pictet Asset Management’s global strategist Luca Paolini.
“You have acceleration in nominal growth, earnings are between 10-15 globally and whatever you look at is pretty much in double digits.”
The only bears remained in the Gulf. TASI down again and Kuwait’s bourse tumbled more than 4 per cent.
Oil prices meanwhile held on to most of their gains, after posting the biggest rise in six weeks. US crude CLc1 drifted back to $57.24 in Europe after going as high as $57.69 and Brent crude futures LCOc1 were at $64.04 after touching a peak of $64.65 a barrel.
The dollar was also back on the move in the currency markets, amid signs of more change at the Fed and that Donald Trump’s Republican party is inching closer to a long-awaited tax cut programme. — Reuters