Paris: Reassured by June quarter results and by a series of encouraging indicators, world markets have rebounded significantly since the start of the summer, and climbed to their highest levels this year.
Standard and Poor’s 500 surged above 1,000 on Thursday and the Paris CAC 40 on Friday rallied 1.24% to 3,521.14 points—both highs not seen since November. In Tokyo, shares on Thursday reached a 10-month high with the Nikkei-225 rising 135.56 points to 10,388.09, the best finish since 6 October.
The previous week, it was London’s and Frankfurt’s turn with the FTSE 100 and the Dax reaching 4,600 and 5,300 points, respectively.
Meanwhile, oil prices rose on Thursday to $76 a barrel in London, the highest level this year.
The markets have returned to levels last seen in October and November after the collapse in September of the Lehman Brothers, considered the epicentre of the financial crisis, according to analysts.
After the bank’s failure, there were fears for the future of the entire capitalist system, they said. But the stock market rebound showed that the system “is not going to collapse”, said Francois Duhen of CM-CIC Securities.
If the worst of the crisis appears to have passed, it is still difficult to talk of a recovery while so many uncertainties remain.
A recovery would require the type of growth not yet borne out by the statistics, said Christian Parisot, shares strategist at brokers Aurel.