Global equities hit new record high

LONDON: Global equities set a new record high and bond yields sank to fresh lows on Thursday as investors positioned for an extended era of cheap money ahead of the European Central Bank’s looming bond-buying scheme.
There were also signs the Eurozone economy may be turning a corner as consumer morale picked up in the bloc’s largest economies and bank lending fell at a slower place.
Central banks’ battle to keep cash flowing into the financial system to avert a deflationary spiral has driven core European government bond yields into or close to negative territory, with German seven-year bond yields the latest to go below zero for the first time on Thursday.
That has pushed investors ever deeper into higher-yielding assets like equities and the MSCI All-Country World equity index climbed to a new record high of 434.40 points.
Bets that a US rate hike might come later than expected, triggered by comments by Fed chair Janet Yellen this week, also bolstered views that the environment of rock-bottom rates would hold for the near future.
“We think central bank easing efforts will continue to provide liquidity to the markets and expect that could help drive flows into equities globally as investors search for yield,” said Mark Mobius, emerging markets fund manager at Franklin Templeton.