World Stock Markets
World stocks hit a new record high on Monday, boosted by strong global technology stocks, while European trading was lifted by a recovery in Spanish markets after a poll eased investors’ concerns over Catalan secession.
MSCI’s world equity index .MIWD00000PUS, which
tracks shares in 47 countries, rose 0.2 percent to its highest ever
level. The index has surged 17.7 percent so far in 2017, and is on track
for its best annual showing since 2013.
Euro
zone stocks .STOXXE climbed 0.2 percent, holding near their highest
level in 10 years. European stocks have surged this year as a healthy
economy dovetailed with convincing growth in corporate earnings and a
reduction in political risk.
Spanish stocks
jumped 1.4 percent and government borrowing costs fell after a weekend
survey suggested Catalan secessionists may lose their majority in
regional elections scheduled for December.
Spain's benchmark 10-year bond yield fell 2 basis points to 1.52 percent ES10YT=TWEB. Banks Caixabank (CABK.MC) and Sabadell (SABE.MC), which moved their headquarters out of Catalonia due to the crisis, led gains on the IBEX .IBEX.
The
broader market showed signs of relief, with euro zone banks .SX7E
rising 0.9 percent, and Italian stocks - which have been sensitive to
the Spanish crisis - up 0.5 percent. Germany’s 10-year bond yield
DE10YT=TWEB also fell.
Technology stocks also
drove European trading, riding a wave of gains on Nasdaq and in Asia
after Apple said pre-orders for its new iPhone X were “off the charts”.
Europe’s tech sector .SX8P has quietly boomed this year, and is outperforming the Nasdaq .NDX in the year so far.
Spanish relief also helped the euro EUR= recover from its three-month low to trade up 0.2 percent at $1.1635.
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