United Kingdom

London reaches pre-Covid peak as the global market moves almost forward

  • Global inventories almost rose on Thursday, with London hitting its highest level since before the pandemic.
  • “The FTSE 100 has reached its highest level since the pandemic, due to growing confidence in the global and UK economic recovery,” analysts said.
  • London’s benchmark FTSE 100 index soared to 6 926.68 points. This is the highest daytime level in over a year.

Global equities rose most on Thursday, London hit a pre-pandemic high, and optimism grew after the Federal Reserve emphasized its commitment to record low interest rates.

London’s benchmark FTSE 100 index soared to 6 926.68 points. This is the highest daytime level in over a year before comparing the rise.

In the euro area, Paris and Frankfurt have also expanded.

“The FTSE 100 has reached its highest level since the pandemic, as confidence in the global and UK economic recovery has increased,” Markets.com analyst Neil Wilson told AFP. Told.

The Asian market rose primarily as traders were fascinated by the Fed’s minutes and more willing to keep borrowing costs at record lows for extended periods of time.

“The optimism surrounding the recovery of the global economy, supported by the Federal Reserve Board’s mitigation measures, has boosted European stocks,” said Sophie Griffith, an analyst at OANDA.

“The minutes of the March (FRB) meeting didn’t reveal anything new, but the Fed’s repeated supportive stance seems to have been a tonic for the market.”

“The Fed’s promise to lower short-term interest rates in the event of a significant fiscal expansion means that it opens the door to the least resistance to equities,” Wilson said.

Bad news is good news

Wall Street opened near highs, contrary to expectations that US unemployment allowances initially rose to 744,000 unexpectedly last week and fell below 700,000.

The Dow started trading basically flat, but the S & P 500 rose 0.3% from Wednesday’s closing price.

“The key point from the report is that it’s disappointing to convince the Fed that it must be patient before it can abolish policy measures,” said Patrick J. O’Hare, a market analyst at Briefing.com. That’s the labor market data. “

“That view tends to fit well into the equity market, which pleases the idea that the Fed won’t raise rates right away,” he added.

This may not bring significant profits to the equity market, but “it is this idea that market participants buy weaknesses and maintain the tendency of equity markets to highlight revolving trading activity.”

Traders were also monitoring the progress of US President Joe Biden’s huge infrastructure program.

The prospect of another huge spending surge coming shortly after his $ 1.9 trillion stimulus has passed added to expectations that the country is heading for blockbuster growth.

Positive outlook

For now, traders are willing to ride this rally as the coronavirus vaccination program progresses, allowing the economy to gradually resume-even if in some areas it is a bit slower than in others.

Axis strategist Stephen Ines said, “Investors appear to be happy and willing to bet on the recovery in the coming months in the light of strong data in recent weeks, so short-term momentum continues. It seems to work in favor of the bulls. “

“In addition, equity volatility has remained low near the lowest levels since the pandemic began, helping to take risks.”

Source: News24

London reaches pre-Covid peak as the global market moves almost forward

SourceLondon reaches pre-Covid peak as the global market moves almost forward

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