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Global shares tracked Asia lower on Friday but remain on course for their sixth straight month of gains as solid corporate earnings and central bank largesse keep sentiment intact, while the dollar held near a 1-month low.
MSCI’s World index was down 0.3 in early European trading, leaving it broadly flat on the week, but up 1 per cent for the month, just shy of a record high.
Markets remain in a tussle, though, as a Chinese crackdown on its technology sector and surging cases of the Delta variant of coronoavirus in Asia and elsewhere range against still-Dovish monetary policy and punchy earnings from a range of companies.
In Europe, UniCredit, BNP Paribas and Eni all saw profits rise on Friday, although underwhelming numbers overnight from Amazon, as some developed market economies begin to reopen after lockdown, proved it wasn’t all one-way traffic.
“We have a bit of day-to-day volatility, but the overall market is quite strong,” said Hans Stoter, global head of core investments at AXA Investment Managers.
“It’s largely still a function of limited alternatives available, with a still attractive pick up in return versus the more risk-free alternatives.”