Fundamental Comment

Global stocks climb to 4-week high on hopes of v-shaped recovery

Global stocks climb to 4-week high on hopes of v-shaped recovery

Global stock indices witnessed a rise to their highest level in four weeks during Monday's trading, with the recovery returning to economic activities in both China and Germany, which may boost global growth, even with continued Covid-19 infections around the world.

The MSCI Global Equity Index, which is a measure of the performance of stock exchanges in 49 countries around the world, witnessed a rise of 0.7% to record its highest level since June 6, after the positive performance of European stocks today.

The Euro Stoxx 600 index climbed 1.64% after the positive performance of shares of automakers, industrial companies, energy companies and banks.

The FTSE 100 for British stocks rose 1.82% at 6269.48 points, the German DAX index surged 1.51% at 12717.34 points and the French CAC 40 index also increased by 1.42% at 5078.14 points.

On the other hand, the MSCI index of Asian and Pacific shares, excluding Japan, edged up by 1.6% to record the highest level since February, in light of the optimism returning to investors.

European data today contributed to the recovery of European and global stocks significantly, as it showed a record recovery in factory orders in Germany, in addition to the rise in retail sales in the euro zone to the highest levels since compiling data for the index.

The upbeat data contributed to the return of investor confidence, which was clearly reflected in the performance of global stocks today.

The recovery of data in China released last week along with European data gave investors a trend that the economic recovery may take the shape of V, yet it also showed that the return to the levels before the Corona pandemic may take longer than previously expected.

The intraday gold prices stabilized today, under the level of $ 1780 an ounce, after a decline in the dollar levels against the major currencies, along with the high demand for the precious metal as a safe haven in the financial markets.

The dollar index, which measures the performance of the federal currency against a basket of six major currencies, declined today and recorded the lowest in two sessions at the level of 96.78 after it opened the week's trading at 97.15.

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