Reuters - Video

EDITION: U.S. | U.K. | IN

Business

Global markets surge to record highs

Wednesday, Jan 15, 2014 - 01:57

Jan 15 - Signs the global economy is finally moving up a gear are prompting world share markets to surge, with Germany's DAX hitting an all-time high. But as Ivor Bennett reports, it's a double-edged sword, with fears over capital flows to emerging markets.

▲ Hide Transcript

View Transcript

Over 7000 points and rising. The last time Egypt's stock exchange hit such heady heights, Hosni Mubarak was still in power. With the country going to the polls to vote on a new constitution, investors are feeling flush. Prompting the biggest index increase in more than three years. Stock trader Naglaa Farrag. SOUNDBITE (Arabic) STOCK TRADER, NAGLAA FARRAG, SAYING: "During the past two sessions before the referendum, investors were worried that the referendum might be disrupted or there may be a lack of security. However, after seeing that the process was stable, investors felt secure about the coming phase and the current available shares." It's a picture repeated in Europe too. The FTSE Eurofirst powering to levels unseen since mid 2008 - and Germany's DAX hitting an all-time high after its biggest rise of the year. The surge comes after the World Bank upgraded its outlook for the global economy - forecasting growth of 3.2 percent this year. Baader Bank's Robert Halver. SOUNDBITE (German) TRADER WITH BAADER BANK, ROBERT HALVER, SAYING: "The future looks brighter, meaning the forecast for the world economy is better than expected. And that is great for German shares, which are having fantasies about exports." As ever though, there are pitfalls. The World Bank again shaving its forecasts for developing countries, down to 5.3 percent. The last two years has seen emerging markets grow at their slowest pace in a decade. With central bank support drying up in advanced economies, there are fears capital flows could contract. Saxo Bank's Nick Beecroft says that's not all. SOUNDBITE (English) NICK BEECROFT, CHAIRMAN & SENIOR MARKET ANALYST, SAXO BANK, SAYING: "My main concern is this rebalancing, especially in China, from export-led growth to consumption. That's a tricky game to play, it's a long game, and the real danger is we'll see a depression on growth more than we expect." Overall though, things are looking up - with even faster global growth predicted for 2015 and 2016.

Global markets surge to record highs

Wednesday, Jan 15, 2014 - 01:57

Top News »

Money »

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

Markets cheer Russia's Ukraine exit Markets cheer Russia's Ukraine exit

Fri, Aug 08, 2014 - (1:50)

Russia, Iraq push Dow to three-month low Russia, Iraq push Dow to three-month low

Thu, Aug 07, 2014 - (2:27)

Wall Street gains but telecom disconnected Wall Street gains but telecom disconnected

Wed, Aug 06, 2014 - (2:28)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)

The week that changed Boston The week that changed Boston

Mon, Apr 14, 2014 - (3:28)