Global Shares Hit Record Peak On Upbeat Results, Dollar Eases

The World Economic Forum said it would postpone its 2021 Davos summit for several months to reduce any risks to participants from the coronavirus pandemic

A gauge of global equity markets hit an all-time peak on Wednesday, after the S&P 500 and Nasdaq indexes set fresh records on upbeat corporate results, while the dollar eased ahead of a highly anticipated speech by Federal Reserve Chairman Jerome Powell.

MSCI’s all-country world index surged past a pre-COVID high reached in February as investors drove up technology stocks after Salesforce.com Inc raised its annual revenue forecast on surging demand for its online business software.

Adding to the upbeat mood was early data from Moderna’s experimental COVID-19 vaccine which showed it induced immune responses in older adults that were similar to those for younger participants.

The S&P 500 and the Nasdaq have hit daily record closing highs since Friday, driven by demand for tech-focused stocks, government stimulus and record low interest rates.

Beter-than-expected economic data in Europe has lited analysts expectations for earnings, driving regional bourses higher. Benchmark indexes in Frankfurt, Paris and London closed up 0.98%, 0.66% and 0.14%, respectively.

The likelihood of a COVID-19 vaccine being introduced in early 2021 combined with very low interest rates and the likelihood rates stay low for longer are driving equities higher, said Sam Stovall, chief investment strategist at CFRA in New York.

“Until we really start to see a worry that interest rates are likely to start to move higher, I still see growth in general, tech and consumer discretionary in particular, holding up very well,” he said.