The first few months of 2010 have seen world stock indices surge to their highest levels since 2008. With many investors still wary about the effects of recession, what is pushing the stock markets onwards and upwards?
In March we saw indices around the world hit 18-month highs - in spite of continuing concerns about the state of the global economy.
By the afternoon of 15 April the Wall Street Cash had rallied above 11,100 and the Singapore Blue Chip hit 12-month highs of 362.67. So what is pushing stock markets upwards when overall sentiment seems to be down?
What is driving the rally?
This sudden ascent may simply be renewed confidence in the state of the global economy - but there are other factors at play. In the case of the Singapore Blue Chip, other elements could be the bid to tackle inflation by allowing the SGD to rise against the USD, and a spike in non-oil and electronic exports of 26.6% and 39.4% respectively.
On a global scale, while some key indicators have remained ambiguous, others such as recent manufacturing reports from China and the US, have indicated a strengthening rate of global expansion. This has spurred a rally among industrial firms which are highly cyclical, which has in turn bolstered the recent equity rally.
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Updated: 20/04/10