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World stocks on two-month high lifting the risk appetite globally

World stocks marketsThe world stocks markets are becoming a way much better as it reached two-months high on Thursday, March 3. Easing concern about the global outlook and the recovery of the commodities has been pointed as the main cause of such drastic change which lifted the risk appetite globally. This is despite the release of new data showing fall backs in some markets today.
According to Reuters report, a survey shows that the “growth in Germany’s private sector slid to a five-month low in February but remained solid, underpinned by growing services” while “MSCI’s world equity index MIWD00000PUS rose to its highest level in two months”. At the same time, “the pan-European FTSEurofirst 300 FTEU3 stock index dropped 0.3 percent but held within sight of Wednesday’s one-month peak”.
Aside from those listed above, Reuters added that “MSCI’s broadest index of Asia-Pacific shares outside Japan MIAPJ0000PUS added another 1.1 percent to reach a two-month peak”. These information serves as an indicator that, despite the fall backs, different markets are still projecting good data that elevates the risk appetite around the globe. It has been pointed out by Markus Huber, a trader at City of London Markets, that in order for these markets to continue to move higher, more good data, especially out of the U.S., will be needed.
Commodity news are showing that oil prices are dropping into levels not seen since 2003 as a result in the growing U.S. crude inventories and a lack of any fresh action from the world’s largest producer to temper supply. Data are showing that the Brent crude prices LCOc1 slipped 0.2 percent to $36.86. On the other hand, copper prices hit their highest in more than three months boosting the confidence in global growth prospects.
Aside from the recovery of commodities, focus is also shifted to the U.S. non-manufacturing ISM report due at 1500 GMT. Data are showing a surprisingly strong 214,000 rise in the private sector jobs which adds speculations that the payroll report would also be upbeat.
The turbulence felt in the global market these past months was changed into a calmer mood. This is shown in the CBOE volatility index VIX, a measure of investor anxiety, in which, today was listed as the lowest level this year. But behind this calmness is the cautious mindset of the probabilities over some concerns such as the weaker Chinese economy.

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