Bloomberg analysts underscore that an amazing rally has been unfolding across global stock markets. The winning streak has been going on for several weeks in a row.
Meanwhile, major stock exchanges in the US, Europe, Canada, India, Japan, and Australia have notched record highs as investors are increasing bets on imminent monetary easing by leading central banks. Such expectations boost the global demand for risky assets, in particular stocks. Interestingly, analysts have spotted the green shoots of recovery even in the battered stock markets in Russia and China.
According to Bloomberg's estimates, 14 out of 20 major stock markets worldwide have hit record highs. The agency's analysts attribute this stunning rally to the prospects of monetary easing worldwide, a recovery in the global economy, and higher corporate earnings.
Currently, the MSCI ACWI index, which tracks the performance of developed and emerging markets, has achieved a historic record, surpassing the landmark 2,000 level. In the US, the S&P 500 and NASDAQ 100 indices have also displayed explosive growth, while the Dow Jones Industrial Average has topped 40,000 points for the first time in history.
Large exchange floors in Europe, Canada, Brazil, India, Japan, and Australia have also been following the bullish trend. Stock markets in these countries have approached their peak levels or are now hovering near record highs, experts said. Amid such fundamentals, Bloomberg's currency analysts expect further growth in global stock indices, noting that the largest stocks are already valued at $6 trillion. Now market conditions are ripe for buying stocks as risks are minimized. The macroeconomic environment sends no red flags, Global Head of Macro & Strategic Asset Allocation Salman Ahmed commented on the current market sentiment. The expert says that stock markets are now in a strong bullish cycle and the rally is widening.
