A global stocks index hit a record high on Tuesday as investors took comfort in growing views the U.S. Federal Reserve is likely to delay the start of tapering its asset purchases and maintain its expansive monetary policy for the near-term.
European bourses are expected to dip, however, after gains on Monday, with Euro Stoxx futures down 0.1% and Britain’s FTSE futures trading 0.3% lower.
The world’s shares, measured by MSCI’s gauge of 50 markets, tacked on 0.1% to log their eighth consecutive day of gains to record highs.
“Now that the tapering announcement from the Fed in September seems unlikely, we should expect ‘Goldilocks’ markets to continue to at least October or November,” said Masahiko Loo, portfolio manager at AllianceBernstein.
The latest rally, which started after Fed Chair Jerome Powell’s dovish speech at Jackson Hole Symposium last month, received a further boost from a surprisingly soft U.S. payrolls report on Friday. The U.S. economy created 235,000 jobs in August, the fewest in seven months as hiring in the leisure and hospitality sector stalled, reducing expectations of an early tapering by the Fed.