Global stock markets experienced an optimistic mood last week, thanks to signs of strengthening of the world’s largest economies and better-than-expected corporate earnings results.
On Wall Street, the Dow Jones rose 1.8 percent last week, to 13,895 points, the highest level since October 2007. The S&P 500 strengthened by 1.1 percent, to 1,502 points, the highest level since December 2007, while the Nasdaq index increased by 0.5 percent, to 3,149 points. This marks the fourth consecutive week of gains for these indices.
The S&P 500 index rose for eight consecutive days, marking its longest positive streak in eight years, and is now only 4.1 percent away from its record level of 1,565 points, reached in October 2007. A series of better-than-expected macroeconomic data positively influenced the market last week. In the U.S., industrial activity is strengthening, and the unemployment rate is falling. Industrial activity in China has reached its highest level in two years, and the situation is improving in Germany, raising hopes for a recovery in the eurozone economy.
– “PMI indices of industrial activity in the U.S., Asia, and Europe are moving in the right direction, which should encourage investors,” says Ken Polcari, director at O’Neil Securities. The positive sentiment among investors is also attributed to the agreement in Washington to postpone discussions on the allowed level of government borrowing, as well as solid quarterly business results. Most companies reported better financial results for the fourth quarter of last year than expected. However, it should be noted that analysts’ estimates are very low.
