Global stocks rise, sustained by bottomless stimulus By Reuters


2/2 © Reuters. FILE PHOTO: A man wearing a protective mask talks on his mobile phone in front of a screen displaying the Nikkei index in Tokyo 2/2

By Tom Arnold and Wayne Cole LONDON / SYDNEY (Reuters) – Global stocks rose for a ninth day in a row on Thursday, just below all-time highs as investors took in recent gains while bulls held on to promise. for more free money after a US crisis inflation report and a dovish outlook from the Federal Reserve. European shares opened higher, and London shares rose 0.3%. That followed a dovish Asian session, as the markets of China, Japan, South Korea and Taiwan were closed for the holidays. MSCI’s broader Asia-Pacific stock index outside of Japan added 0.1%, having risen for four sessions already to gain more than 10% so far this year. Investors were also reflecting on the first phone call between US President Joe Biden and his Chinese counterpart Xi Jinping, where Biden said a free and open Indo-Pacific was a priority and Xi warning that confrontation would be a must. “disaster” for both nations. With Chinese markets closed, there was little reaction to the news that the Biden administration will seek to add “new specific restrictions” on certain exports of sensitive technology to China and maintain the tariffs for now. Futures for the were 0.2% higher, having hit all-time highs on Wednesday. The MSCI World Stock Index, which tracks stocks in 49 countries, was 0.1% higher. That was not far from the peaks reached the day before and only maintained a nine-day winning streak, the first since October 2017. “The story is still US equities in first place,” said James Athey, chief investment officer. from Aberdeen Standard Investments. . “The earnings season has been especially strong in the US, the fiscal stimulus coming from the Biden administration is getting bigger in the market mind and most of the big winners from the pandemic are on the US list. “. Only the Fed can rock the boat and with yesterday’s disappointing inflation, the outlook has slid even further into the future. “The outlook for more global stimulus got a big boost overnight from a surprisingly soft reading of US core inflation, which fell to 1.4% in January. I wanted inflation to hit 2% or more sooner. to even think about cutting down on the bank’s super easy policies. In particular, Powell emphasized that once the effects of the pandemic were removed, unemployment was closer to 10% than the 6.3% reported, and therefore was a long way from full employment. As a result, Powell called for a “whole society commitment” to reduce unemployment, which analysts saw as strong support for President Joe Biden’s $ 1.9 trillion stimulus package. Westpac, Elliot Clarke, estimated that more than $ 5 trillion in cumulative stimulus, worth 23% of GDP, would be needed to repair the damage caused by the pandemic. “Financial conditions are expected to continue to be very supportive of the economy d e United States and global financial markets in 2021, and probably until 2022, “he said. The combination of unlimited Fed funding and a dovish inflation report encouraged bond markets, leaving 10-year yields at 1.14%, down from a high of 1.20% earlier in the week. Italian bond yields held near recent lows ahead of a long-term bond auction and Mario Draghi was expected to unveil his new governing coalition in the coming days. The yield on Italy’s 10-year BTP or government bond fell one basis point to 0.490%, close to its lowest level since early January. After the US inflation report and the Fed’s Powell reiterated that rates could remain low for longer, the US dollar fell before stabilizing during European trading. It remained flat at 90,438, away from a 10-week high of 91,600 touched late last week. Gold rose 0.1% to $ 1,845.26 an ounce as investors pushed platinum to a six-year high on bets on higher demand from automakers. [GOL/] Oil prices fell, having enjoyed the longest winning streak in two years amid supply cuts from producers, and he expects the launch of vaccines to fuel a recovery in demand. [O/R] futures fell 39 cents to $ 61.07. it fell 36 cents to $ 58.31 a barrel.