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Global Stocks Hit Record on Trade Deal Progress, Vaccine Hopes

Global Stocks Hit Record on Trade Deal Progress, Vaccine Hopes

Global equities climbed to a record high on Wednesday, as progress in U.S.-China trade talks and hopes for the development of a vaccine against the novel coronavirus fueled investor appetite for stocks.

The MSCI All-Country World Index, which includes both emerging and developed world markets, climbed 0.4% to 581.11, topping a previous high from February. While tensions between the U.S. and China have been rising recently, risk assets rallied after the two countries this week reiterated their commitment to a phase-one trade deal in a biannual review.

Massive stimulus injections to boost pandemic-ravaged economies in the U.S., Europe and other major regions are fueling a rally as stocks rebound from the global sell-off through March. Covid-19 cases are rising in some parts of Europe and the U.S. and U.S.-China trade tensions persist, but investors in search of returns have few alternatives to equities.

With investors focused on vaccine progress, Moderna Inc. said it’s near a deal to supply at least 80 million vaccine doses to the European Union.

©2020 Bloomberg L.P.