A broad measure of equity markets across the world climbed to a record high yesterday, boosted by gains in Asia, while US and European markets were little changed, with US energy shares weighing on the benchmark S&P 500 index as crude prices fell.
Oil prices have been pressured over the past several days after hitting their highest since May last week, as Opec exports hit a record peak last month and output rose to a 2017 high.
Strong economic data globally and healthy corporate earnings in the United States have supported equities, with the Dow industrials closing Friday at its eighth consecutive record high.
“I have seen a lot of companies exceeding their revenue growth and we also have better-than-expected global growth, which are the main drivers for equities,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
The Dow Jones Industrial Average rose 8.24 points, or 0.04 per cent, to 22,101.05, the S&P 500 gained 1.43 points, or 0.06 per cent, to 2,478.26 and the Nasdaq Composite added 26.92 points, or 0.42 per cent, to 6,378.48.
MSCI’s gauge of stocks across the globe gained 0.20 per cent. The pan-European FTSEurofirst 300 index lost 0.14 per cent.
Emerging market stocks gained 0.65 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.5 per cent higher, while Japan’s Nikkei rose 0.52 per cent.
Oil prices fell, with energy markets focused on comments from Opec and non-Opec officials who are meeting in Abu Dhabi to discuss ways to boost compliance with a deal to cut output.
US crude fell 1.63 per cent to $48.77 per barrel and Brent was last at $51.64, down 1.49 per cent on the day.
“The market is looking for comment from Saudi Arabia signalling Opec will meet its agreed target,” Hans van Cleef, senior energy economist with ABN AMRO, said.
“The possibility for (price) movement seems limited unless Opec comes out with a statement.”
In currency markets, the US dollar edged lower but held on to most of its Friday gains, as investors await inflation data this week that may signal a turnaround in the greenback’s weakness so far this year.
“We have a view that the United States dollar is due for some mild corrective strength in the near-term and we see some confirming price action from some of the key G10 currency pairs,” said Erik Nelson, currency strategist at Wells Fargo Securities in New York.
“Some of these dollar-bloc currencies are starting to show signs of maybe rolling over in the near-term.”