This week saw record highs for global markets as excitement over artificial intelligence boosted risk appetite and hopes for a rebound in economic growth. Nonetheless, some investors are issuing a word of caution, voicing worries that the current rise may be compromised by inflated tech values.
Oliver Bäte, CEO of Allianz, a wealth manager with close to $1.85 trillion in assets under management, called the state of the markets “very dangerous.” “We are being extremely cautious about certain tech sector valuations,” he said in a Friday interview with CNBC’s “Squawk Box.”
Following the record-breaking closing of the Stoxx 600 index in the previous session, European markets continued to rise on Friday. The pan-European benchmark jumped to 495.1 on Thursday, surpassing its previous top of 494.35 in January 2022, according to LSEG data. This was due to fresh earnings reports from Europe and positive momentum following Nvidia’s outstanding revenue announcement in the U.S. France’s CAC and Germany’s DAX both hit all-time highs.
Thursday saw Japan’s Nikkei 225 reach a new all-time high of 39,098.68 in the Asia Pacific area, breaking the previous record of 38,915.87 established in 1989.
American stock indexes have reached new all-time highs, reflecting this increasing trend in the country as well.
Source (CNBC)
