The S&P 500 and the Dow Jones Industrial Average led a global stock market rally on Thursday, buoyed by the view that the damage inflicted by the latest trade tariffs imposed by the US and China would be less than feared.
Both the S&P 500 and the Dow hit record highs on the day despite the dollar index dropping to its lowest level for 10 weeks. Emerging market assets also rallied, with the FTSE EM equity index increasing for three consecutive days.
Sterling continued its climb, this time to a 10-week high against the dollar, following the release of the latest UK retail sales data, which was found to be more positive than expected. The pound steadied shortly after, as EU leaders, meeting in Salzburg this week, warned that Prime Minister Theresa May’s plan for Brexit “will not work.”
Oil prices slowly fell following Wednesday’s announcement of a drop in US crude inventories.
The dollar index was down 0.7% to 93.86, while the euro gained 109 points to hit $1.1782. Sterling rallied to a ten-week high against the greenback as it inched closer to $1.33 before settling at $1.3274 in the evening.