World stocks hit new high as Spain relief, tech rally boost European scrips

A strong rally in the technology sector helped drive global stocks to a record high on Monday, while a recovery in Spanish markets supported European shares after an opinion poll smoothed investors' concerns over Catalan secession.

MSCI's world equity index, which tracks shares in 47 countries, rose 0.2 per cent to its highest ever level. The index has surged 17.7 percent so far in 2017 and is on track for its best annual showing since 2013.

Eurozone stocks climbed 0.3 per cent, holding near their highest level in 10 years. European stocks have rallied this year as a healthy economy dovetailed with convincing growth in corporate earnings and a reduction in political risk.

"There is an avalanche of things that are happening or going to happen, but markets are just shrugging it off. It's like markets have been vaccinated against bad news thanks to the strength of the global business cycle," said Marie Owens Thomsen, global head of economic research at Indosuez Wealth Management in Geneva.

Spanish stocks extended gains, up 2 per cent and set for their best day in three weeks after a weekend poll suggested Catalan secessionists may lose their majority in regional elections scheduled for December.

Spain's benchmark 10-year bond yield fell 5 basis points to 1.486 per cent. Banks Caixabank and Sabadell, which moved their headquarters out of Catalonia due to the crisis, led gains on the IBEX.
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