Global stock on longest winning streak since 2003
Global stocks are in the midst of the longest run of gains in 17 years as optimism over the economic recovery sweeps across markets.
According to Bloomberg, the MSCI benchmark for emerging and developed market stocks has risen for 12 straight sessions, while U.S. equities were higher for a third day.
In Japan, the Nikkei 225 Stock Average extended its advance past the 30,000 level. European markets steadied after a rally on Monday.
The reflation trade is powering assets tied to economic growth and price pressure, including commodities and cyclical stocks.
At the same time, investors are riding a wave of speculative euphoria from penny stocks to Bitcoin amid abundant policy support. “Continued monetary stimulus and bursts of fiscal support maintain a strong foundation for risk assets,” said Seema Shah, chief strategist at Principal Global Investors.
The S&P 500 rose 0.3 per cent in New York, adding to a record. It has added 5 per cent so far in 2021. Small caps in the Russell 2000 continued to climb, also gaining 0.3 per cent.
The index has surged almost 17 per cent this year. The mood was more subdued in Europe, where major indexes were little changed. Emerging market gauges were also flat.
Brent oil is holding near a 13-month high after freezing temperatures crippled the Texas power system and disrupted crude production. Nearly five million people across the U.S were plunged into darkness as homes and businesses lost power
Natural gas futures for March delivery surged as much as seven per cent.