09.06.201423:26:16UTC+00Bull markets rise with help from central banks

In recent months, stocks and indexes of various equities all around the world have gained to multiple historic levels spurred on by the relaxed conditions in the global financial market. Steps taken such as the most recent move by the European Central bank to push interest rates to the negative have resulted in relaxed and amenable trading conditions, but some economists warn that a turnaround might be looming in the future.

Some of the factors giving confidence to bulls include the the FTSE All World equity index, which tracks the global top shares, and the back to back record finishes coming in its view after getting a bump up of 0.1% at the beginning of this week.

In other locations, the New York market’s S&P 500 recorded a similar 0.1% improvement, making it climb to a seventh record high in eight sessions of 1,951. Frankfurt’s Xetra Dax saw itself breaching the 10,000 level for the first time in its history after a 0.2% climb. Both of these indexes are predicted to break even more records during the rest of the year.

In Europe, where much of the attention has been at following the ECB announcements, the FTSE Eurofirst 300 reached levels not seen in six years after it gained 0.4%. Finally, in Asia, the Nikkei 225 index in Tokyo had its best performance in three months going up by 0.3%.

As central banks strive to keep interest rates as low as possible and signify that any increases will be transitioned slowly and smoothly, believers of bull markets are looking more confident. An analysis of equity valuations, however, is enough to make some tread cautiously fearing stretched valuations in Europe and the US.

In the meantime, though, recently released reports on the US economy through a positive jobs data, and the aforementioned ECB measures, have the market moving towards continued growth.