World stocks were enjoying the view at an all-time high on Friday, lifted by a week of strong U.S. economic data and promises from the European Central Bank that cheap money will be sloshing around for years. European shares were marginally in the red as the dust settled from Thursday’s forecast-busting U.S. jobs data and ECB meeting, with investors taking the opportunity to lock in profits after the biggest week of gains since March.
Markets keep going up. The world is still awash with money and a lot of it is still coming into equities.
Daniel McCormack, equities strategist at London’s Macquarie Capital
A new three-year peak for Asian stocks overnight meant MSCI’s All World share index, which tracks 45 countries, set its fourth consecutive record high, while the dollar, U.S. bond yields and growth-sensitive copper were also up for the week. The ECB will give banks the opportunity to borrow up to 1 trillion euros for four years at a rate of only 0.25 percent from September in the hope they will lend some of that money to businesses and consumers.
More liquidity in the system is a boost for bonds.
Peter Chatwell, fixed income strategist at Credit Agricole