The new year rally has continued for stocks worldwide. On Monday, European shares briefly touching their highest level since mid-November, with energy producers leading the risers. Investors seemed to be responding to government’s efforts to revive the global economy.
European companies that get a lot of their sales in the US rose on word that President-elect Barack Obama is seeking the equivalent of more than 220 billion euros in tax cuts as part of a massive stimulus plan. Asian shares have been strong performers since the markets there reopened after the new year holiday. The President of the Tokyo Stock Exchange said: “I believe that we are in the process of fighting back from further decline.” And Tokyo financial market worker Nami Miyazaki was upbeat. She said: “I only started working last year and faced this economic crisis which people say only happens once in a century. I hope that people will see this as a chance rather than a setback and make efforts to move the world into a better direction.” The new year rally has come despite more dismal economic news, including evidence that manufacturing in the US, Europe and China is deteriorating amid the slowdown.