European stock markets join the world party
Bond markets are the losers as equity markets start the year with a bang, thanks to upbeat economic news
London — World stocks hit fresh highs on Wednesday with European markets joining the party as early indications suggest 2018 will be another year of synchronised global growth led by a shining European economy. MSCI’s index of global stocks, which tracks shares in 47 countries, pushed on to new record highs on Wednesday — after posting its biggest one-day gain in more than two weeks on Tuesday, and in the wake of its best year since 2009 in 2017. The pan-European stock index opened 0.3% higher, adding to gains for their Asian and the US counterparts overnight as manufacturing surveys pointed to a strong start for the European economy. The single currency was holding near a four-month high of $1.2081 hit on Tuesday. "Investors have woken up in the new year and looked forward to another firm year for global growth with very muted downside risk," said Investec economist Philip Shaw, though he warned against reading too much into the first two trading days of the new year.
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