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20/05/24
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Global Stocks Strong on Optimism About Economy
Global stocks started the week at near record highs while gold and copper performed, buoyed by investor hopes about inflation slowing, Chinese efforts to address its property crisis, and economic growth.
Gold rose over 1% to a record $2,449.89 per ounce, while 3-month copper on the London Metal Exchange soared by 4.1% to a historic high of $11,104.50, after so far this year rising 28%.
Analysts at Rabobank find it notable that the two metals are rallying together as the two normally provide different signals, with gold being an indicator of wider sentiment and copper reflecting the economic outlook.
They suggested one factor behind the moves was a move by central banks into bullion, and also a shift of household savings into commodities from stocks.
After Iran’s president was killed in a helicopter crash, hints of a safe haven bid for gold could also be in the mix. For copper, traders said short covering and speculation may be the cause.
On Monday, MSCI’s widest index of Asian Pacific shares excluding Japan lifted to the highest level in two years while its global share index was up slightly.
Blue chip indexes in Germany, Britain, and France, which also reached records highs last week, were up between 0.2% and 0.5%.
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