Global stocks rebound, erase losses this year

Global stocks rebound, erase losses this year

Global stocks erased their losses for the year as confidence in the US economy and a rally in emerging markets restored $3 trillion (R32 trillion) of value. The market capitalisation of shares climbed to $62.1 trillion yesterday, exceeding its level at the end of December and rebounding from a low of about $59 trillion on February 4. The MSCI all-country world index advanced for a 10th day, paring this year’s decline to 0.7 percent at 8.44am in London. Stocks rebounded from the worst start to a year since 2010 after US unemployment fell to the lowest level since 2008, Chinese trade increased and developing nations took steps to stem capital outflows. Equity funds tracked by EPFR Global and Citigroup lured more than $11 billion in the week to February 12, led by the US as Federal Reserve chairwoman Janet Yellen said economic growth had picked up and pledged to pare back stimulus in “measured steps”. – Bloomberg

Rand, emerging markets retreat

The rand retreated with most emerging market currencies after China drained funds from its banking system and before South African inflation data that may indicate future interest-rate moves. The rand fell to R10.8875 to the dollar at 5pm yesterday. Page 22