This week, world stocks reach high as buy sentiment prevailed on market indices under our coverage with thirteen (13) advancers and one (1) decliner, after U.S President Joe Biden embraced a bipartisan senate infrastructural deal, this may extend the recovery in the world’s largest economy after massive fiscal stimulus helped the economy grew at a 6.4% annualized rate in the first quarter.
Also, U.S Personal Consumption Expenditure (PCE) price index, excluding the volatile food and energy components, increased 0.5%. In the 12 months through May, the P.C.E price index shot up 3.4% y-o-y.
Accordingly, in the U.S, the S&P 500 Index advanced by 2.74%w/w, boosted by gains in Nike and sector stocks. The tech-heavy Nasdaq Composite and DJIA index both gained 2.35%w/w and 3.44% w/w respectively.
Also, all the major markets around Europe, France CAC 40, German DAX, and UK FTSE 100 Index gained 0.82% w/w, 1.04% w/w, and 1.69% w/w respectively, as travel picks up in Europe.
Furthermore, the major indices in Asia under our coverage, China Shanghai Composite, India S&P BSE Index, Japan Nikkei 225, and Hong-Kong HANG SENG all advanced 2.34%w/w, 1.11%w/w, 0.35%w/w, and 1.69%w/w respectively.
All the major indices in the emerging market indices under our coverage, South-Africa FTSE/JSE Index and Egypt EGX 30 gained 0.88%w/w, and 4.19%w/w respectively, save for Brazil’s BOVESPA, which slumped by 0.90%w/w and Argentina MERVAL that remained unchanged.
We expect the global equity market to maintain a positive posture in the next trading week in reaction to U.S President Joe Biden Infrastructural plan. However, important economic data and monetary authorities may sway investors’ sentiment.
