Global Shares Takes Fresh Run at Record Highs Over Fed Reports

LONDON, U.K. – Shares in the world stock market on Thursday have taken fresh runs at their respective record highs following the US Federal Reserve setting market players up nicely towards a packed day with the Brexit-defining UK general election and central bank meeting.

From the recent announcement, the Fed is keeping the interest rates in the US unchanged, as widely expected. However, the statement from the central bank came with a message that there has to be an unexpected and persistent boost in inflation to help lift them once again.

The unchanged interest rates helped Asian shares to achieve gains for today’s trading session, rising by around 1% despite the reports about the US pressing new tariffs on Chinese imports. The Europe stock market also recorded around 0.2% to 0.5% increase gains early on the trading session, leading the broadest index in the world under MSCI just 0.1% below its record high from January 2018.

Meanwhile, market players have been bracing for a packed week early on with a series of events scheduled in the next few days that could make or break the market and could have huge potential in causing massive swings in the financial markets for the upcoming months.

In recent polls, the expectations were strong that the Conservative party led by Prime Minister Boris Johnson would win the majority of voters for the general elections. However, the latest poll showed a shrinking lead for the Conservatives.

In the currencies front, the sterling strengthens, staying at its highest since two years ago against the euro. It is now closing towards an eight-month high against the US dollar as the Brits head into the election that would determine whether Brexit will go forwards or not in January 2020.

Traders are also starting to hedge their bets as the British pound experienced around a 10% surge in the past few months.

According to Peter Kinsella, the Global Head of Forex Strategy at the Union Bancaire Privee, they think that it is possible to move towards the $1.35 level and even going up as much as $1.37 if the Conservatives win the majority of the seats in the election. Otherwise, the British pound may look towards going down between $1.26 to $1.27.

As the dollar weakened recently, the euro is starting to gain its upward momentum, rising towards $1.1144. It is now getting near its five-week high, following the first meeting of Christine Lagarde as the new president for the European Central Bank.

Market players are watching on Lagarde’s style and signals, although the majority are certain that she will keep the rates on hold.