MSCI world equity index rose by 0.2%
Shares across the world made further gains on Thursday following the Federal Reserve saying that it was too soon to consider pulling back emergency support for the economy, while Joe Biden proposed a stimulus package.
The MSCI world equity index, which tracks shares in 49 countries, rose by 0.2%, on the way to its best month since November, Reuters reported.
US Treasury yields advance 1.8 basis points to 1.6486, below Wednesday’s two-week high, as euro zone government bond yields stayed below two-month highs.
Fed Chair Jerome Powell said yesterday that “it is not time yet” to start discussing any policy changes after the US central bank left interest rates and its bond-buying programme unchanged, despite holding a positive outlook over the US’s economic recovery.
The Fed’s position, robust US corporate earnings and the notion that Biden is going big on infrastructure were all supportive for markets, said François Savary, chief investment officer at Swiss wealth manager Prime Partners.
“The Fed confirmed the roadmap for any change in policy, which is a reassuring factor,” he said. “It looks like tapering won’t materialise until 2022 and that has induced weakness for the dollar, is supportive of market liquidity and means less pressure on emerging markets.”
