Stocks surge on Brexit optimism, dollar dips

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Stocks surge on Brexit optimism, dollar dips

On Friday, the 15th of March 2019, a basket of equity markets across the globe had hit a five-month high over optimism of a no-deal Brexit aversion and renewed hopes of US-China trade talk. Despite an inflammatory eurozone economic outlook, European stocks alongside currencies climbed higher, while dollar again dived in to the reds, posting its biggest weekly fall since early December.

Hopes of a potential aversion of a chaotic exit from European Union and possibilities of further clinging on to EU between 1-2 years, the indexes of Europe hit their best levels since last October, while progresses on US-China trade talk had also boosted investors’ sentiment.

Britain’s exit from EU seemed to be facing a long delay, as EU-27 gathering on March 21st-22nd would likely to propose UK to extend their Brexit deadline more than 1 year ahead of an upcoming EU election scheduled to be held on May.

Meanwhile, the American dollar fell again on Friday (March 15th) against of a gauge of global currencies and majors, as weak US economic data had weighed on to investors’ sentiment, apart from the no-deal Brexit bias, which had not yet been evaporated.

The MSCI’s all country world index, which keeps track of stock exchanges of 47 countries, surged 0.62 percent, posting its five-month high, while the broad-based rally had also extended into Wall St. and Europe. While this report was being prepared, March 15th, GMT.

23.00, US dollar index was down by 0.15 percent to 96.57, again posting a plunge of 0.29 percent after falling for four straight days earlier.