Stocks flat after Wall Street reaches record highs – business live squib
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Stock markets around the world have continued their push into uncharted territory in the wake of the coronavirus pandemic shock. The MSCI World index, the US benchmark S&P 500 and the large-cap European index, the Stoxx 600, all hit record highs on Thursday.
It was yet another buoyant day for financial markets yesterday as remarks from Fed Chair Powell helped to sustain the ongoing strength in risk assets, whilst also putting downward pressure on Treasury yields. Although Powell’s comments stuck to his dovish messaging of late, they offered fresh reassurance to investors who’d begun to price in earlier rate increases on the back of some very strong economic data in recent weeks, not least with last week’s jobs report.
Equity markets remain in a sweet spot: greater confidence in post-pandemic growth prospects supports risk appetite; while central banks remain dovish, and bond yields have yet to reach a level that provides relative valuation competition.