New milestones for equity markets
Stock markets reached important milestones this week, as the global equity rally continued.
The S&P/TSX Composite Index topped 14,000 for the first time since mid-2008. On Wall Street, the S&P 500 has doubled since its pre-crisis low in March 2009. The technology-heavy NASDAQ Composite Index rose to its highest point since October 2007. The MSCI All Country World stock index has surged more than 100% from its March 2009 lows.
Canadian stocks were strong performers over the week, propelled by the energy sector. Many emerging markets recouped losses from the previous week on a more optimistic U.S. economic outlook.
Despite worries over developments in the Arab world, cash continues to flow into stocks. There is increasing evidence that once-reluctant individual investors are now embracing equities. A key factor pushing prices upward is rotation out of other asset classes, such as fixed income investments.
Other factors buoying stocks include a steady stream of strong corporate profits and increasing corporate merger and acquisition activity. This week saw another huge buyout – a US$20 billion deal in the global pharmaceutical sector.
On the U.S. economic front, U.S Federal Reserve members raised their forecasts for 2011 growth to 3.4% to 3.9%, up from 3% to 3.6%. And economists surveyed by the Wall Street Journal indicated they expect the fastest growth in the U.S. since 2003.
In Canada, many forecasters are also raising growth estimates after last week’s report of considerable strength in Canadian exports. Exports surged 9.7% in December over November, the largest jump since February 1982.
For a look at the week ahead go to :
http://investorsgroup.com/consult/terry.pitz/english/cnf_frameset.asp?pg=/English/prodServices/marketCom/default.shtml
Stock markets reached important milestones this week, as the global equity rally continued.
The S&P/TSX Composite Index topped 14,000 for the first time since mid-2008. On Wall Street, the S&P 500 has doubled since its pre-crisis low in March 2009. The technology-heavy NASDAQ Composite Index rose to its highest point since October 2007. The MSCI All Country World stock index has surged more than 100% from its March 2009 lows.
Canadian stocks were strong performers over the week, propelled by the energy sector. Many emerging markets recouped losses from the previous week on a more optimistic U.S. economic outlook.
Despite worries over developments in the Arab world, cash continues to flow into stocks. There is increasing evidence that once-reluctant individual investors are now embracing equities. A key factor pushing prices upward is rotation out of other asset classes, such as fixed income investments.
Other factors buoying stocks include a steady stream of strong corporate profits and increasing corporate merger and acquisition activity. This week saw another huge buyout – a US$20 billion deal in the global pharmaceutical sector.
On the U.S. economic front, U.S Federal Reserve members raised their forecasts for 2011 growth to 3.4% to 3.9%, up from 3% to 3.6%. And economists surveyed by the Wall Street Journal indicated they expect the fastest growth in the U.S. since 2003.
In Canada, many forecasters are also raising growth estimates after last week’s report of considerable strength in Canadian exports. Exports surged 9.7% in December over November, the largest jump since February 1982.
For a look at the week ahead go to :
http://investorsgroup.com/consult/terry.pitz/english/cnf_frameset.asp?pg=/English/prodServices/marketCom/default.shtml
No comments:
Post a Comment