The stock markets around the world hit the 29-months highs. The new wave of investor`s optimism is born by positive dynamics of the economic recovery. By the way, easing of the political situation in Egypt supports the growth.Wall Street looked set to open flat to slightly higher.

Oil prices fell back from 28-month highs, but Brent crude was still more than $101 a barrel on worries that unrest in Egypt could trigger changes to the status quo elsewhere in the Middle East and North Africa.

The dollar fell to three-month lows against a basket of major currencies before recovering slightly.

MSCI’s all-country world stock index, one of the broadest gauges of global equities, was up 0.4 percent after earlier hitting levels last seen in August 2008.

Its developed market counterpart gained 0.3 percent, close to a high last seen in early September 2008.

Emerging markets were up 0.6 percent on the day, but remain down more than 1 percent for the year, reflecting a recent shift by investors from emerging to developed markets.

Stock investors were cheered on Tuesday by strong factory data worldwide, which pushed U.S. benchmark stock indexes to their highest closing levels since June 2008.

Strong earnings from delivery firm UPS Inc and drugmaker Pfizer in the United States on Tuesday, and Imperial Tobacco on Wednesday added to the mood.

“The world economy appears to be improving a little faster than expected, valuations are ok and companies are publishing quite good results,” Geert Ruysschaert, strategist at BNP Paribas Fortis Private Banking, said. “So investors can take advantage of that.”

The pan-European FTSEurofirst 300 was up 0.1 percent, off its highs but at a 3.5 percent year-to-date gain. Earlier, Japan’s benchmark Nikkei ended up 1.8 percent for its biggest daily gain since December 2.

Concerns about the political crisis in Egypt, meanwhile, were easing on financial markets after President Hosni Mubarak said he will step down at the end of his term in September, although protestors continue to demand an immediate end to his 30-year rule.

Foreign investors have begun to show renewed interest in Egyptian bonds and stocks and the cost of insuring Egyptian debt against default fell.

It's only fair to share...Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin

Leave a comment

Your email address will not be published. Required fields are marked *