US stocks rise as worries fade
Mihir Kapadia, CEO and Founder, Sun Global Investments
US stocks rose again to new all-time highs as worries about North Korea and the fears of the severity of the hurricane faded. The Nasdaq is now 19.9 per cent higher for 2017 while the Dow is up 11.9 per cent over the same period. Risk appetite has returned strongly this week as risky assets including stocks and the dollar have advanced while bonds and safe haven assets have fallen significantly.
European stock indices also saw strong upward gains, with the exception of the UK indices as the rise in GBP value backed by higher than expected inflation numbers for August increased fears of an interest rate hike. The increase in value of the pound also put pressure on exports. UK Gilts sold off sharply with 10-year yields rising nine bps!. In overnight trading in Asia, stock indices are mixed. Hong Kong, Taiwan and Korea are lower.
The Nikkei Stock Average is up 0.45 per cent and has added to gains after closing at its best level in five weeks yesterday.