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GLOBAL MARKETS-World stocks hit record high as techs lead relief rally

Published 10/01/2020, 03:30
Updated 10/01/2020, 03:36
© Reuters.  GLOBAL MARKETS-World stocks hit record high as techs lead relief rally
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* MSCI ACWI hits record high; Apple leads tech shares

* Relief over U.S.-Iran tensions support sentiment

* Gold, safe-haven currencies, oil all weaker

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Hideyuki Sano

TOKYO, Jan 10 (Reuters) - The world's shares hit a record

high on Friday as a relief over de-escalation of U.S.-Iranian

tensions quickly prompted investors to bet on faster global

growth, especially in the technology sector.

MSCI's broadest gauge of the world's stocks in 49 countries

.MIWD00000PUS rose a tad to hit an all-time high and its index

of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.18%.

Japan's Nikkei .N225 rose 0.34% while Australian stocks

.AXJO rallied 0.7% to a record high. Chinese shares .SSEC

were little changed.

Asia's gains followed record-setting in the pan-regional

STOXX 600 index in Europe .STOXX and the three major stock

indexes on Wall Street.

The S&P 500 .SPX gained 0.67%, with its technology sector

rising more than 1%. Apple AAPL.O gained 2.1%, helped by news

that sales of its iPhones in China in December jumped more than

18% year-on-year. .N

Investors welcomed the report as a prelude to the upcoming

visit by China's Vice Premier Liu He, head of the country's

negotiation team in Sino-U.S. trade talks, to Washington next

week to sign a trade deal with the United States. "We will have a symbolic event of Sino-U.S. dialogue. Given

the current strength of the market, it is hard not to expect

this rally to continue for the time being," said Norihiro

Fujito, chief investment strategist at Mitsubishi UFJ Morgan

Stanley Securities in Tokyo.

Global shares quickly erased losses that followed missile

attacks from Iran targeting U.S. forces in Iraq, as the two

countries moved to defuse the tension.

"On top of easing tensions in Iran, optimism on U.S.

corporate earnings are fuelling sentiment. The euphoria is

coming back to the markets," said Masanari Takada, cross asset

strategist at Nomura Securities.

While analysts expect slight declines in profits for S&P 500

companies in the last quarter, they see a solid recovery this

year.

Waning worries about all-out war in the Middle East pushed

down gold, safe-harbour currencies and oil.

Gold XAU= eased 0.3% to $1,547.8 per ounce from a

seven-year high of $1,610.90 hit right after Iran's missile

attack on Wednesday.

Against the yen, the U.S. dollar traded at 109.52 yen

JPY= , having hit a two-week high of 109.58 in U.S. trade on

Thursday.

The euro stood little changed at $1.1105 EUR= , having

fallen to $1.10915 in the U.S. trade, its lowest in about two

weeks.

Sterling fell to a near two-week low against the U.S. dollar

after Bank of England Governor Mark Carney said there could be a

"relatively prompt response" from the bank if the current spell

of economic weakness persisted. The pound last stood at $1.3069, having fallen to as low as

$1.3014 in the previous session.

Oil prices were sharply lower from their highs hit in the

wake of Iran's missile attack.

U.S. West Texas Intermediate (WTI) crude CLc1 fell to as

low as $58.66 per barrel on Thursday and last stood at $59.38,

down 0.3% on the day, compared to Wednesday's peak of $65.65.

China's Vice Premier Liu to sign U.S. trade deal in Washington

next week ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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