World stock markets rallied on Tuesday, fueled by a strong corporate earnings in Europe, including improvements on Greek debt talks and Japan’s new pledge in preparation to a weaker currency.
The MSCI All-Country World index increased by about 0.4 percent, along with the pan-European FTSEurofirst 300 index, which climbed by 1.3 percent, while the MSCI Emerging Market index also surges.
Meanwhile, U.S. equity index futures rallied by 0.5 percent, and an increase was seen in oil prices, led by Canada’s supply disruptions.
European stock markets remained steady on positive momentum from earlier in Japan, citing increase of 2.2 percent on Nikkei after Finance Minister of Japan Taro Aso reissued his tenacity to intrude in the currency market if the strengthening yen will continue to hurt Japan’s weak economic recovery.
After Aso commented, the yen was sent to its lowest level in nearly two weeks against the greenback, and strengthened conditions of central banks throughout the world searching for alternatives to improve the world economy.
The manager of Hampstead Capital hedge fund Lex Van Dam stated record low interest rates from the European Central Bank implies that stocks are still offered more encouraging returns compared to cash or bonds, while the manager of Clairinvest fund Ion-Marc Valahu said he had acquired European equity positions last week.
"Rates are not going anywhere, so buying any dips on the stock market might still be the best strategy," Van Dam said.
European equities find support from some steady corporate results.
Furthermore, Credit Suisse shares rallied after the bank released a smaller-than-expected loss in the first quarter, while jewelry manufacturer Pandora increased after posting encouraging profits and raising its financial overview.Publication source