Market update: US equities test new highs and the rest of the globe joins the ride – 20.05.2013

Source: Henderson Global Investors

US stocks touched record highs on Friday registering a fourth consecutive week of gains as positive economic data led investors to buy shares of growth companies. The gains in both the Dow Jones (up 0.8% to a record high of 15,354.4) and S&P 500 (up 1.0% to a record level of 1,666.1) were led by the energy and industrial shares. Data released on Friday showed US consumer confidence was at its highest in nearly six years.

The gains in Wall Street lifted the mood in Asia overnight while bourses continued their two-week rally on signs of an improving global economy. In Japan the Nikkei rose 1.5% to its highest level since December 2007, despite a strengthening in the yen on comments by the economics minister that further yen weakness could hurt households. The bright mood from the US and Asia spilled into European markets this morning. In early trading both the FTSE Eurofirst 300 and FTSE 100 indices were up 0.1%, while traditional safe havens such as US Treasuries and German bunds saw reduced demand lift their yields (lower prices). Gold was also down $12 to $1,347 an ounce.