Global equities hit record high value of $66 trillion
- 29th August 2014
- Accountancy & Finance
Global equities hit a new high this week as the S&P 500 closed above 2,000 for the first time.
Global financial markets made history this week, after a record-breaking performance from the S&P 500 Index contributed to the highest value ever recorded for international equities. Bloomberg reports that global shares had added more than $2.2 trillion in value since 7 August.
As a result, this week they hit a spectacular value of $66 trillion – the highest in history – while the MSCI All-Country World Index ticked upwards by as much as 3.8 per cent from this month’s low point.
It comes as a number of significant indices report strong performance. On top of the MSCI, the S&P 500 Index reached a milestone when it closed above the 2,000 mark for the first time in its history. Having risen by 0.6 per cent over the past two days it closed at 2,000.02 yesterday amid continued signs that the US economy is getting stronger.
Consumer confidence and durable goods orders have both risen according to the most recent data, fuelling optimism about the outlook for the world’s largest economy.
Other major economic players are also trading well, with Japan’s Topix index close to its highest level so far this year – a far cry from the sizeable losses incurred earlier in 2014.
Meanwhile, the Stoxx Europe 600 Index has rallied, with the biggest gain in any two-day period since April. Investors have paid attention to the loose monetary policy being discussed by the European Central Bank, and stocks have risen on speculation that president Mario Draghi could follow through on his hints at an asset-purchase programme.
But the economic giants are not alone in performing well – Bloomberg reports that Brazil’s Ibovespa has risen by 7.2 per cent in August, while Saudi Arabia’s Tadawul All Share Index has gained seven per cent ahead of plans to open its borders to foreign investment.
Overall, Bloomberg says, markets are getting over the threats posed by political and economic instability in several regions. As confidence grows that governments will continue to take action to encourage growth, the markets are reaping the benefits.
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