Global shares hit record closing highs; oil ends higher over Mideast tensions

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Global shares hit record closing highs; oil ends higher over Mideast tensions

On Monday, a gauge of global equity indices soared for an eleventh straight session in a row, winding up the day at record closing highs as investors remained Panglossian over a quicker rollout of pandemic vaccines across major economies likes of UK and the United States, while crude oil futures joined equity markets’ rally following an abrupt rise in tension in the Mideast.

In point of fact, global equity markets stayed utterly riant since early-February when the Democrat-led US Senate had passed a budgetary bill which in effect would allow the US President Joe Biden to push forth with a proposed $1.9 trillion in pandemic stimulus bill, stoking prospects of an earlier-than-expected economic recovery.

On top of that, a mass-scale pandemic vaccination campaign in major G20 economies, added to further bullish wings to investors’ bets on riskier assets. Apart from that, crude oil futures’ prices hit a 13-month high earlier in the day following reveal of a media topline that the Saudi militaries had intercepted a missile-attached drone launched by the Yemeni Houthis, raising the possibilities of a disruption in crude oil supply chain.

Global shares end up at record closing highs as oil gains on soaring Mideast tensions

Citing statistics, in the day’s equity market wind down, the MSCI’s gauge of global equity indices that keeps track of 49 stock exchanges across the world, added 0.4 per cent with Cboe Volatility Index, widely known as the Wall Street’s ‘fear gauge,’ indenting to its lowest level in a year, while the regional pan-European STOXX 600 spiked to a fresh one-year peak with Vivendi leading the tally of gains.

Apart from that, while mainland China alongside Hang Seng were closed due to Lunar New Year Holidays and Wall Street had been on Presidents Day holiday, London’s blue-chip FTSE 100 gained as much as 2.2 per cent. In the holiday-thinned Asian market, Japan’s benchmark Nikkei 225 climbed 1.9 per cent to hit a 30,000-level for the first time in more than three decades, while India’s SENSEX added 1.18 per cent, surging to all-time closing high of 52,154.13.

In the commodity market, US crude rose 1.2 per cent to $60.21 per barrel and UK crude climbed 1.2 per cent to settle down at $63.15 per barrel, while precious safe-haven gold futures tumbled 0.2 per cent to wrap up the day at $1,819 an ounce.

Meanwhile, forecasting further upswing movements ahead in global equity markets, a chief investment officer at UBS Global Wealth Management, Mark Haefele said, “We believe investors should prepare for bouts of volatility ahead, but regard them as opportunities rather than threats.

We recommend investors stick to their long-term financial plans, and continue to put excess cash to work.