LONDON Reuters Global equities edged towards record highs on Friday after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal, raising hopes for an extended rebound in the worlds largest economy, and a tight supply outlook boosted oil.
Investors have been looking to an infrastructure agreement to extend the U.S. recovery after massive fiscal stimulus helped the U.S. economy grow at a 6.4 annualized rate in the first quarter. The plan is valued at 1.2 trillion over eight years, 579 billion of which is new spending.
The positive market tone recognizes the potential growth benefits of the compromise, but with the smaller size tempering some of the tax implications to pay for it, said Kerry Craig, global market strategist at J.P. Morgan Asset Management.
MSCIs allcountry index rose 0.13, nearing a record high reached on June 15 and bringing gains for the week to more than 2.
European stocks rose 0.1 towards record highs hit this month, after the SP 500 gained 0.58 and the Nasdaq Composite added 0.69, lifting both indexes to recordhigh closes. The Dow Jones Industrial Average rose 0.95.
Germanys DAX was steady and Britains FTSE index was up 0.14.
Monetary and fiscal stimulus around the world in response to the COVID19 pandemic is boosting financial assets, despite an uneven pace of recovery between regions, said Eddie Cheng, head of international multiasset portfolio management at Wells Fargo Asset Management.
Bonds go up, equity goes up,…