World Stocks Headed to the 12th Month of Gainers

World Stocks Headed to the 12th Month of Gainers

World Stocks Headed to the 12th Month of Gainers

$BP, $RYAAY, $BNPQY

World stocks headed for a record 12th month of gains Tuesday, as a 5.5 month high in European stocks and records elsewhere underscored one of the most robust Bull markets in history.

Europe’s latest rally came as figures from the once-fragile Eurozone showed its growth now running at 2.5% Y-Y and unemployment at its lowest since early Y 2009 at under 9%.

It helped Europe’s main exchanges extend modest early gainers ahead of what is expected to be a higher start for Wall Street and Asia had mostly risen despite some disappointing industrial data from China.

Focus also remained on USD, which was set for its biggest monthly rise since February, having dipped slightly Monday.

There does not look to be any alternative to riding the risk wave in the markets.

“The question clients are asking and we are asking ourselves, is how long are we supposed to stay in this Rally.”

The upbeat Eurozone data nudged up Eurozone bond yields slightly.

Italy’s borrowing costs were set to end October with their biggest monthly drop in more than 2 years after a surprise ratings upgrade, the extension of the ECB’s bond buying program (QE), and the approval of a new electoral system.

Italy’s benchmark 10-year bond yield had fallen to its lowest mark in 10 months before the data at 1.837%. It is down over 30 bpts this month, which is the biggest move since July 2015.

Shares in heavyweight Crude Oil major BP (NYSE:BP) rose more than 3% to their highest since July 2014, after Q-3 profits beat expectations and it announced a share buyback program.

Ryanair (NASDAQ:RYAAY) hurt recently by cancelled flights, climbed more than 5% after it maintained its full-year profit guidance, though BNP Paribas (OTCMKT:BNPQY)sank 3% after its results disappointed.

So far, more than 40% of MSCI Europe companies have reported results for Q-3, of which 65% have either met or beaten expectations, according to Thomson Reuters I/B/E/S data.

Financials and tech are sectors standing out for their large proportion of beats.

The year-long global surge in stocks, driven by the pick-up in growth, corporate profits and still ultra-low interest rates, was set to see MSCI’s 47-country ‘All World’ index top the Y 2003 run of 11 straight months of gainers.

Wall Street is expected to start fractionally higher following a dip from the last round of record highs Monday .

MSCI’s index of Asia-Pacific shares outside Japan had ended up 0.4%, as strong gains in South Korea and Taiwan, which make up roughly a Quarter of the index’s weighting, offset weakness in China and Hong Kong.

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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