NEW YORK (Reuters) - World equity markets scaled records on Friday with global growth prospects raised by upbeat Chinese economic data and optimism a U.S.-Sino trade deal is imminent, but the year-end rally ebbed on Wall Street and the dollar eased as risk appetite grew.
Wall Street set all-time highs early and European shares rose to a third day of record peaks this week as various U.S. and European indexes remained set to post their best year since the global financial crisis a decade ago.
Profits at Chinese industrial firms grew at the fastest pace in eight months in November, rising 5.4% from a year earlier to 593.9 billion yuan ($84.93 billion). The gains snapped three months of decline, but broad weakness in domestic demand remains a risk for Chinese corporate earnings in 2020.
The U.S.-China trade war has rattled international commerce. Trade between the world’s two largest economies fell 15.2% in the 12 months through November from the same period in 2018, according to Panjiva, a S&P Global Market Intelligence unit.
The dollar slipped across the board as growing risk appetite sapped the safe-haven appeal of the greenback.
MSCI’s gauge of stock performance in 49 countries .MIWD00000PUS gained 0.26% while the pan-European STOXX 600 index rose 0.21%, both setting all-time highs.
In Europe, financial services .SXFP, industrial .SXNP, chemicals .SX4P and health care .SXDP notched intraday record highs. The STOXX 600 index is up 24% this year.
Equity markets are poised to rise further in 2020, even as high valuations pose a concern, said Rahul Shah, chief executive of Ideal Asset Management in New York.
