March 2, 2017 / 11:58 AM / in 9 months

Global market-cap hits an all-time high

LONDON (Reuters) - The total value of global stock markets surpassed its previous May 2015 peak to hit a new record, according to Thomson Reuters data, as investors continued to pump money into equities on hopes of a pick-up in growth, inflation and corporate profits.

FILE PHOTO - The Nasdaq logo is displayed at the Nasdaq Market site in New York September 2, 2015. REUTERS/Brendan McDermid/File Photo

World stock markets have added more than $4 trillion in value since Trump's election with about half of that coming from U.S.-listed stocks alone. The total value of global stocks stood at $56.7 trillion as of Wednesday's close.



Stocks in sectors most geared to the economic cycle, such as mining companies and industrials, have been the biggest drivers of the rally since last summer on hopes of a global infrastructure push. Bank stocks also soared as bond yields rose.

While the rally has taken market valuations above long-term averages, some analysts say there is scope for more gains as investors on the sidelines come back to stocks.

“We think the market still has the potential to move higher as investors capitulate into equities; note that the ‘Great Rotation’ out of fixed income into equities has yet to happen,” said analysts at Bank of America-Merrill Lynch.

Reporting by Vikram Subhedar and Thyagaraju Adinarayan; Editing by Catherine Evans



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