London: World stocks rose for the sixth session running yesterday, hitting a 15-month high, with stronger trade data from China boosting optimism about the global economy while the dollar remained under pressure.
The dollar slipped following Friday's weak US jobs data and comments from a Federal Reserve official that interest rates in the United States are likely to stay low for quite some time.
Cold weather in the United States and Europe, a weaker US currency and concerns over gasoline supplies following a fire at Korea National Oil Corp's Newfoundland refinery in Canada helped oil to jump more than $1 (Dh3.67) to a 15-month high.
Stronger-than-expected Chinese export and import data and a fall in the dollar also boosted commodities, with gold rising 1.7 per cent to a 5-week high, copper jumping 3 per cent and aluminium advancing more than 2 per cent.
China's exports leapt 17.7 per cent from a year earlier, dwarfing the 4 per cent rise forecast by economists. Imports surged 55.9 per cent, much more than the 31 per cent increase markets had expected.
Strong hand
"China is one of the biggest exporters in the world and they will play a very strong hand in the global economic recovery. That is why this news has been received very well by investors," said Joshua Raymond, market analyst at City Index.
Global equities measured in the MSCI All-Country World Index rose 0.9 per cent to 309.95 points after rising to 310.08, the highest since late September of 2008. The FTSEurofirst 300 of top European shares hit a 15-month peak, boosted by financial and energy stocks.
Investor appetite for risky assets such as equities grew, with the VDAX-NEW volatility index falling to a 16-month low before paring losses. The lower the index, which is based on sell and buy options on Frankfurt's top-30 stocks, the higher the market's desire to take risk.
The US currency continued to be under pressure after data on Friday showed US employers cut 85,000 jobs last month, disappointing many in the market who had expected the US economy to stop losing jobs.
The dollar, down 0.7 per cent against a basket of major currencies, also extended falls after St Louis Federal Reserve Bank President James Bullard said rates may remain low for some time, although he said Fed policy was unlikely to be pushed off course by December's weak jobs data.
