Global Shares Hit Record High On COVID Recovery Bet

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Global shares hit record highs on Tuesday and were on track for their longest winning streak in 17 years as investors bet the rollout of COVID-19 vaccines would lead to a durable economic recovery and draw a line under a year of lockdowns.

Global shares hit record highs on Tuesday and were on track for their longest winning streak in 17 years as investors bet the rollout of COVID-19 vaccines would lead to a durable economic recovery and draw a line under a year of lockdowns.

“The big picture is that there is an awful lot of enthusiasm for recovery when it comes to the vaccine programme,” said Michael Hewson, chief market analyst CMC Markets.

The ZEW investor sentiment index in Germany, Europe’s biggest economy, rose by far more than expected in February on expectations that people will flock back to shops and other retail outlets in the coming six months.

Prospects for recovery lit up commodities, with copper at $8,384.50, after hitting its highest since May 2012, and platinum scaling a 6-1/2 year peak. The European mining index was at its highest level since July 2011.

Hospitality stocks could see more gains as restaurants, hotels and pubs reopen in coming weeks. They should do well on the back of the “staycation” trade, Hewson said.

Recovery hopes in Britain sent sterling to 2-1/2 year highs, just short of $1.40 against the dollar.

Oil prices jumped to a 13-month high as a deep freeze due to a severe snow storm in the United States not only boosted power demand but also threatened oil production in Texas.

Bitcoin was trading at $49,061.90 in Europe, after hitting a new record high $60 shy of $50,000 earlier in the day

-REUTERS

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