Financial Associated Press, May 20 (editor Xiaoxiang) from New York to London and then to Tokyo, if these are now the largest in the worldShakespearemach3xtreelIf there is anything in common with several stock markets, it is that they are all setting new historical records!

More than half of the world's 20 largest stock markets have recently reached an all-time high, according to a set of statistics. These markets include: Australia, Japan, India, Sweden, Germany, Denmark, the Netherlands, Switzerland, France, the United Kingdom, Brazil, Canada and the United States from east to west.

The MSCI global stock index (MSCI ACWI), which tracks developed and emerging markets, has been running at record highs and hit new highs again on Friday.

In the United States, the world's largest stock market, the S & P 500 and NASDAQ 100 have also rewritten record highs several times in the past week, while the Dow broke the 40000 mark for the first time in history.

Many analysts say the looming interest rate cut cycle of global central banks, a healthy economy and a corporate profit environment have contributed to the current dynamic atmosphere in the global market. More importantly, there are many potential drivers in the market-such as the $6 trillion deposited in US money market funds, which are likely to flow out again once the Fed starts cutting interest rates. At the same time, the negative risk facing the market is still scarce, which is likely to keep the rally going.

"from a macro point of view, there is no red alert signal," said Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International. The cyclical situation of the market remains strong and the uptrend is expanding. "

In fact, although there was a short-term correction in global stock markets in April, it did not last long, as bargain-hunting and buying began to emerge. That may help explain why the s & p has not fallen by more than 2 per cent for 311 days-the longest consecutive record since 2017-2018.

The following is an inventory of recent movements in the world's major stock markets:

The rise of US stocks

After not hitting a new high for nearly two years, the S & P 500 has rewritten its all-time high 24 times in less than five months this year. By market capitalisation, US stocks have rebounded by about $12 trillion since bottoming out in October.

A key reason for the rally in US stocks is the expectation of a soft landing for the US economy, which remains strong while cooling inflation, fuelling bets that the Fed will ease monetary policy as soon as later this year.

Another powerful factor is the enthusiasm for AI technology. AI chip giant Nvidia contributed about 1/4 of the S & P 500's gain. Add Microsoft, Amazon, Meta and Alphabet, the parent company of Google, and about 53 per cent of the gains in the S & P 500 come from these five stocks.

Dave Mazza, CEO of Roundhill Investments, believes that the record high set by the Dow last week may be more far-reaching, because these tech giants are not heavily weighted in the index.

"while the strength of the technology sector is important to help the market hit one new high after another, it is far from the only sector in the market that is doing well," he said. Although it was pointed out last year that the market was too concentrated, it cannot be said this year. "

European stocks are amazing.

As we reported earlier this month, European stock markets have also seen a record "surge" as European economic data show signs of bottoming out this year. The economic recovery has boosted corporate profits and fuelled expectations that the local market is expected to continue to rise.

A team of BNP Paribas strategists led by Georges Debbas said, "European stocks were expected to perform poorly during the earnings season, but the results were better than people feared." This stimulated analysts' expectations for future profits, which pushed the stock market higher. "

The data show that the pan-European Stoxx 600 index has risen in five of the past six months. The divergence in monetary policy between European and US central banks is likely to have been a big plus for the region's stock market strength-the ECB's tone has been noticeably more dovish than that of the Fed in the past few months. Interest rate markets expect the ECB to cut interest rates ahead of the Fed for the first time ever.

In terms of specific rising stocks, while Euroserver's rally has long been concentrated in a few stocks, that range has expanded since February-16 stocks now account for half of the year's gains in the pan-European Stoxx 600 index. Among them, Nuohe Nuode, a maker of slimming drugs, made the largest contribution, accounting for 10% of the index's increase this year, while chip equipment manufacturer Asmai and enterprise application software provider AIP accounted for 7% respectively.Shakespearemach3xtreel.7%, 4.3%.

Asian heroic style

There is no need to dwell on the strong performance of Japanese stocks during the year-the Nikkei 225, which has broken its 34-year high, is up 16% this year, up from 28% last year. Governance reforms by Japanese companies to improve shareholder returns, the weakness of the yen and the end of negative interest rates in Japan have all attracted a large number of investors to drive Japanese stocks higher.

BlackRock strategists say that although the decline in the yen may deter some foreign investors. But they believe that the long-term prospects for Japanese stock investment remain positive because of corporate reform, domestic investment and wage growth.

India's stock market has also been strong throughout the year, with its benchmark S & P BSE Sensex (Mumbai sensitive 30 index) hitting record highs several times, thanks to the government's investment commitment and economic performance that has maintained strong growth momentum.

However, some investors have become more cautious about the outlook for the Indian stock market in recent weeks because of the uncertainty and high valuations brought about by the Indian election.

Commodity frenzy

Finally, on a global scale, the impact of the big bull market in commodity markets on stock markets is becoming increasingly prominent.

As a major commodity exporter, Canada's main stock benchmark, the S&P/TSX composite index, has hit an all-time high. Gold and copper prices have repeatedly set record highs this year, fuelling a sharp rise in the large mining sector, which accounts for more than 12 per cent of the index.

"the journey of precious metal prices to record highs may temporarily support the Canadian stock index, but it will cause trouble if precious metal prices reverse," industry analysts Gillian Wolff and Gina Martin Adams wrote in a report.

In addition to the Canadian market, Australia's S&P/ASX200 index also hit an all-time high on March 28 after the country's inflation data strengthened bets on a peak in interest rates. Although expectations have changed since then: some former central bank officials predict that the rate cut may not come until the end of 2025. But recently, driven by the surge in the prices of industrial metals such as copper, the Australia benchmark stock index has returned to hovering near all-time highs.