LONDON: Global shares rose for a ninth day running on Thursday, just off record highs, as investors digested recent gains, while bulls were sustained by the promise of more free money after a benign U.S. inflation report and a dovish Federal Reserve outlook.
With Chinese markets closed, there was little reaction to news the Biden administration will look at adding"new targeted restrictions" on certain sensitive technology exports to China and would maintain tariffs for now.AdvertisementThe MSCI world equity index, which tracks shares in 49 countries, was 0.1per cent higher. That was not far from peaks reached the day before and just sustaining a nine-day streak of gains, a first since October 2017.
The outlook for more global stimulus got a boost overnight from a surprisingly soft reading on core U.S. inflation, which eased to 1.4per cent in January.Federal Reserve Chair Jerome Powell said he wanted to see inflation reach 2per cent or more before even thinking of tapering the bank's super-easy policies.
Westpac economist Elliot Clarke estimated over US$5 trillion in cumulative stimulus, worth 23per cent of GDP, would be required to repair the damage done by the pandemic. Italian bond yields remained near recent lows before a long-term bond auction and as Mario Draghi was expected to present his new government coalition in the next few days. Italy's 10-year BTP, or government bond, yield was down one basis point down at 0.490per cent, near its lowest since early January.