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GLOBAL MARKETS-Shares hit record peak on upbeat results, dollar eases

Published 08/27/2020, 12:19 AM
Updated 08/27/2020, 12:20 AM
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(Adds U.S. market open, byline, dateline; previous LONDON)
* MSCI's all-country world index hits new all-time high
* Nasdaq, S&P 500 also hit new intraday highs
* Fed chair due to speak at Jackson Hole on Thursday
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Herbert Lash
NEW YORK, Aug 26 (Reuters) - A gauge of global equity
markets hit an all-time peak on Wednesday, after the S&P 500 and
Nasdaq indexes set fresh records on upbeat corporate results,
while the dollar eased ahead of a highly anticipated speech by
Federal Reserve Chairman Jerome Powell.
MSCI's all-country world index surged past a pre-COVID high
reached in February as investors drove up technology stocks
after Salesforce.com Inc raised its annual revenue forecast on
surging demand for its online business software. Adding to the upbeat mood was early data from Moderna 's
MRNA.O experimental COVID-19 vaccine which showed it induced
immune responses in older adults that were similar to those for
younger participants. The S&P 500 and the Nasdaq have hit daily record closing
highs since Friday, driven by demand for tech-focused stocks,
government stimulus and record low interest rates.
Better-than-expected economic data in Europe has lifted
analysts expectations for earnings, driving regional bourses
higher. Benchmark indexes in Frankfurt .GDAXI , Paris .FCHI
and London .FTSE closed up 0.98%, 0.66% and 0.14%,
respectively.
The likelihood of a COVID-19 vaccine being introduced in
early 2021 combined with very low interest rates and the
likelihood rates stay low for longer are driving equities
higher, said Sam Stovall, chief investment strategist at CFRA in
New York.
"Until we really start to see a worry that interest rates
are likely to start to move higher, I still see growth in
general, tech and consumer discretionary in particular, holding
up very well," he said.
The MSCI index .MIWD00000PUS , a gauge of equity
performance in 49 countries, rose 0.56% to 582.11, passing its
previous record of 581.02, while Europe's broad FTSEurofirst 300
index .FTEU3 added 0.80% to 1,446.47.
On Wall Street, the Dow Jones Industrial Average .DJI fell
0.05%, the S&P 500 .SPX gained 0.50% and the Nasdaq Composite
.IXIC added 1.14%.
Salesforce.com CRM.N , which is set to enter the blue-chip
Dow index .DJI next week, jumped 25.1%.
Investors are betting that when he speaks on Thursday,
Powell will create expectations of more inflation, said Jim
Vogel, interest rate strategist for FHN Financial.
Powell is scheduled to address the Fed's policy framework
review and investors are focused on whether he will hint at
shifting the U.S. central bank's inflation target to an average.
The dollar index, which tracks the greenback's value against
a basket of currencies =USD fell 0.056%.
Earlier the index hit a session high of 93.37 after data
showed that U.S. durable goods orders increased more than
expected in July. The euro EUR= fell 0.08% to $1.1824.
The 10-year U.S. Treasury US10YT=RR note rose 2.8 basis
points to 0.7096%.
Euro zone bonds were flat, with safe-haven Bund yields
DE10YT=RR rising a smidgeon after enduring on Tuesday their
biggest daily losses since May as better German economic data
and trade dented hunger for government debt. Oil prices traded little changed, pressured by worries about
the demand outlook during the coronavirus pandemic but buoyed as
U.S. producers shut output in the Gulf of Mexico ahead of
Hurricane Laura.
Producers evacuated 310 offshore facilities and shut 1.56
million barrels per day of crude output, 84% of Gulf of Mexico's
offshore production - near the 90% outage that Hurricane Katrina
brought 15 years ago.
Brent crude futures LCOc1 fell $0.13 to $45.73 a barrel.
U.S. crude futures CLc1 gained $0.03, to $43.38 a barrel.



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