Government stimulus, strong corporate earnings from US banks and in Europe, along with signs of economic recovery in countries leading the Covid-19 vaccination race have all helped push stock market indexes to new heights this week. — Reuters picNEW YORK, April 17 — Gold prices hit a seven-week high and global stocks scaled new records yesterday after strong US and Chinese economic data bolstered expectations of a solid global recovery from the coronavirus pandemic.
As long as the strong economic rebound, tremendous fiscal and monetary support and progress on vaccine distribution remain in place, markets can grind higher, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. US homebuilding surged to nearly a 15-year high in March, the Commerce Department said yesterday, adding to robust retail sales data the prior day, suggesting the economy was roaring.
German car and truck maker Daimler rose 2.7 per cent as higher vehicle prices and strong demand in China helped it post a better-than-expected surge in quarterly operating profit. Asian markets rallied overnight on the news. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent and Shanghai shares added 0.8 per cent. Japan’s Nikkei edged up 0.1 per cent.
The dollar index fell 0.14 per cent, with the euro up 0.13 per cent to US$1.198. The Japanese yen weakened 0.02 per cent versus the greenback at 108.78 per dollar.