European shares jumped to the highest in a month after France introduced new stimulus measures to drive the economy and spur job creation. The euro weakened, while commodities slumped.
The Irish index of shares rose just under 1 per cent amid a broad rally in Europe that showed the stock market advance is continuing to expand beyond the tech sector. France's CAC 40 Index surged 1.7 per cent. The euro dipped to $1.18 on signs the European Central Bank is concerned about the currency's strength. The dollar climbed, while Treasuries were steady and gold slipped.
Around the world, the equities rally is gaining fresh momentum. The S&P 500 jumped 1.5 per cent yesterday to hit another record and Japanese stocks are trading at the highest since February.The rotation away from technology giants like Apple, Tesla and Zoom – which all slumped on Wednesday – is yet another bullish sign amid hopes for a coronavirus vaccine.
"What we are seeing is a little bit of profit taking now in the big tech sector as people look to rebalance their portfolios going into the last part of this year," Ann Berry, partner at Cornell Capital, said on Bloomberg TV. "Folks are trying to go back to basics a little bit as we continue to see these surges and the topping out in the value of the market right now."
Meanwhile, the US Centres for Disease Control and Prevention has told states to prepare for a Covid-19 vaccine to be ready by November 1st, an aggressive goal that suggests availability just before the presidential election. Infectious disease expert Anthony Fauci warned of a potential surge in American cases from the coming long holiday weekend.
"Markets continue to show unrestrained faith in the capacity of central bank liquidity to chart a relatively smooth path for the global economy out of the Covid challenges," said Stephen Miller, investment strategist at GSFM. – Bloomberg