World stocks headed for a record twelfth month of gains on Tuesday, as a 5 1/2-month high in European stocks and records elsewhere underscored one of the most robust bull markets on record.
latest rally came as figures from the once-fragile euro zone showed its
growth now running at 2.5 percent year-on-year and unemployment at its
lowest since early 2009 at under 9 percent.
It helped Europe’s
main bourses extend modest early gains ahead of what was expected to be a
higher start for Wall Street and Asia had mostly risen despite some
disappointing industrial data from China.
Focus also remained on
the dollar which was set for its biggest monthly rise since February,
having been knocked back slightly on Monday by fresh political unease.
investigators probing Russian interference in the 2016 U.S. election
charged President Donald Trump’s former campaign manager, Paul Manafort,
and another aide, Rick Gates, with money laundering.
seem to be very little alterative to riding the risk wave in the
markets,” said asset manager GAM’s group head of multi-asset portfolios
“The question clients are asking and we are asking ourselves, is how long are we supposed to stay in this (rally).”
The upbeat euro zone data nudged up euro zone bond yields slightly.
borrowing costs however were set to end October with their biggest
monthly drop in more than two years after a surprise ratings upgrade,
the extension of the ECB’s bond buying program and the approval of a new
Italy’s benchmark 10-year bond yield had fallen
to its lowest level in around 10 months before the data at 1.837
percent. It is down over 30 basis points this month, which is the
biggest move since July 2015.
Company earnings updates also added some spice.
in heavyweight oil major BP jumped more than 3 percent to their highest
since July 2014, after third quarter profits beat expectations and it
announced a share buyback program.
Ryanair, hurt recently by
canceled flights, climbed more than 5 percent after it maintained its
full-year profit guidance, though BNP Paribas sank 3 percent after its
So far, more than 40 percent of MSCI Europe
companies have reported results for the third quarter, of which 65
percent have either met or beaten expectations, according to Thomson
Reuters I/B/E/S data. Financials and tech are sectors standing out for
their large proportion of beats.
The year-long global surge in
stocks, driven by the pick-up in growth, corporate profits and still
ultra-low interest rates, was set to see MSCI’s 47-country ‘All World’
index top the 2003 run of 11 straight months of gains.
Wall Street was expected to start fractionally higher following a dip from the last round of record highs on Monday.
index of Asia-Pacific shares outside Japan had ended up 0.4 percent, as
strong gains in South Korea and Taiwan, which make up roughly a quarter
of the index’s weighting, offset weakness in China and Hong Kong.
Chinese data had shown a sharper-than-expected slowdown in October factory growth.
Korea's KOSPI ended up 1 percent at a record high after Seoul and
Beijing agreed to normalize relations that have been strained by a
year-long standoff over the deployment of a U.S. anti-missile system in
“Shares that have long been pressured by ongoing
political disputes between the two countries are reacting positively to
the announcement, including Hyundai Motor-related stocks,” said Cho
Byung-hyun, a stock analyst at Yuanta Securities.
Tech-heavy Taiwan added 0.4 percent after Apple made big gains overnight on hopes of strong demand for its new range of iPhones.
Nikkei closed flat, capped by the overnight weakness in U.S. shares and
a stronger yen. The Bank of Japan meanwhile stressed it saw no reason
to end its mass stimulus program.
The dollar's rebound ahead of
U.S. trading pulled it off a 10-day low of 113.02 yen struck after
details of charges for former Trump aides were disclosed. It was last at
The euro was softer at $1.1637. It had pulled back overnight from a three-month low of $1.1574 on Friday.
commodities, crude oil prices steadied below their recent peaks after
being boosted by expectations OPEC-led production cuts would be extended
Brent crude futures were down 0.1 percent at $60.80 a barrel after rising to $61 overnight, the highest since July 2015.
U.S. crude was 0.15 percent lower at $54.10 after touching $54.46, its highest since late February.
gold was also a fraction lower at $1,274 per ounce. It has shed about
0.3 percent so far in October, in what could be its second straight