Global equities markets soared yesterday with some bourses printing all-time highs. To those outside of the investment community the equity rally seems in contrast to economic news.
-FTSE 100 closed at 6,557.30 the highest level since December 2007
-DAX closed at 8,181.87 an all-time high
-Dow Jones Industrial Average rallied to close above the psychological 15,000 level for the first time
The rally has been fuelled by cheap money, from the historically low borrowing costs. The minimal yield from government bonds has led to many to investors to seek a return in the equity markets. Loose fiscal policies and the expectations of further quantitative easing from some central bank has led to equity indices outperform the returns of many hedge funds.
Gold imports by China from Hong Kong more than doubled to an all-time high in March as buyers in the biggest consumer after India boosted purchases, underscoring increased bullion demand in the world’s second-largest economy - Bloomberg
Reserve Bank of New Zealand Governor Graeme Wheeler said the New Zealand dollar is significantly overvalued and has the potential to continue appreciating which is a significant concern for the central bank - MNI
Copper surged on Tuesday following the better than expected German factory orders, and optimism on the Chinese outlook
China’s slower growth has not jeopardized their sovereign bond ratings (Aa3) - FITCH
UK Halifax House Prices: +1.1% MoM +2% YoY