The global rally in stocks is showing no sign of slowing, as upbeat investors pushed the most widely-tracked index of world stocks up for a ninth straight day and sailing past the 500 point barrier. As Sonia Legg reports, oil prices also largely held on to gains after posting the biggest rise in six weeks a day earlier, buoyed partly by moves by Saudi Arabia's crown prince to tighten his grip on power.
A new record high for Germany's Dax followed the best day in 25 years for Japan's Nikkei. It had responded to all-time peaks for all Wall Street's major indexes. And it didn't stop there. Relentlessly upbeat investors then pushed the most-widely tracked index of world stocks past 500 points - as eight days of increases became nine days. (SOUNDBITE) SEVEN INVESTMENT MANAGEMENT, MARKETING DIRECTOR, JUSTIN URQUHART-STEWART, SAYING: "So it continues and it continues really because we're also going to be putting on money for the time being. Yes we've had all the sort of big tail risk warriors of Rocket Man behaviour of Trump and Brexit and all those sort of issues when in fact of course compared to interest rates at the moment. People are still getting better returns in the equity markets." The Gulf was the only weak spot. Nervousness around the weekend purge of Royals and officials in Saudi Arabia sent its stocks markets down again. Kuwait's also tumbled 4 percent. Oil prices saw their biggest rise in six weeks on Monday as a result of the arrests. They largely held on to their gains. The Crown Prince's attempt to tighten his grip on power also cranked up tensions between the kingdom and Iran. (SOUNDBITE) SEVEN INVESTMENT MANAGEMENT, MARKETING DIRECTOR, JUSTIN URQUHART-STEWART, SAYING: "If the Saudi problems get worse and this isn't being seen to be a clear real organization on sound ground then it will actually cause further destabilization and further probably hikes in the oil price if it calms down then that oil price could easily come back down again." So too can stock market valuations The higher they get the greater the risk. (SOUNDBITE) SEVEN INVESTMENT MANAGEMENT, MARKETING DIRECTOR, JUSTIN URQUHART-STEWART, SAYING: "We're now dealing with a record period of low volatility. We haven't seen this level of volatility for some 50 years at some stage. That's going to change. When does it change. Well probably with more rate rises." For now though analysts say it's hard to find negative news. A global recovery is helping equities and strong companies are helping the economy.