Global stocks shatter records despite high interest rates

2024-02-23
Summary:

Asian investors enter Friday's trading buoyed by a global market surge. Yet, caution is warranted with Treasury yields up and the dollar resilient.

Investors in Asia could not be going into Friday's trading in more bullish spirits amid global stock market boom, although the rise in Treasury yields and resistance of the dollar cannot be ignored.

The S&P 500, the Dow and Nasdaq 100 all surged to record closing highs overnight, powered by investors piling into tech stocks, after Nvidia forecast a roughly three-fold surge in Q1 revenue.


The FTSE 100 and STOXX 50 also rose as economic data improved in Europe. The UK’s benchmark index still lagged EU and US markets, failing to notch gains this year due to its small tech sector.


The recent rally in global stocks has only a little further to go given last year's unexpectedly sharp run-up, according to a Reuters poll. All 15 major stock bourses surveyed were expected to rise this year.


The Nikkei index was forecast to hold on to its gains to trade around 39,000 by year-end. The FTSE 100, forecast to touch 7,900, is the only index that analysts downgraded their outlook for.


Equity strategist were split on whether there will be a correction in the next three months. While higher-for-longer interest rates could cap gains, strong corporate earnings are likely to cushion stocks from any major falls.

U30USD

The Dow is catching up with other US stock indexes that are more tech-heavy. MACD diverges negatively against the uptrend, but the index looks bullish as long as the 50 EMA holds.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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