Global shares hit fresh peak, oil up on Middle East tensions
Yesterday, global shares rose for the 11th straight day, creating new optimism about the effect of the distribution of Covid-19 vaccines and fiscal aid from Washington. However, tensions in the Middle East are behind the high price, driving oil to a 13 month high. As more people receive vaccinations in key markets such as the US, President Biden seeks to pump an extra $1.9 trillion in stimulus into the economy, hoping to drive the relation trade.
On Friday, the Cboe Volatility Index, which is commonly referred to as Wall Street’s fear gauge, ended at its lowest in nearly a year since the beginning of the pandemic. This drove a 0.4% gain for MSCI’s broadest measure of world stocks on Monday. Europe’s major indexes also saw growth over the past week, with Britain’s FTSE 100 up 1.5%. China and Hong Kong markets were closed for the Lunar New Year Holiday, leaving Japan’s Nikkei to lead the way and climb 1.9%.