Markets soar to record highs on easy money

Tim Wallace
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US MARKETS hit record levels yesterday as investors were boosted by sustained money printing in the US combined with the emerging economic recovery.

The Dow Jones broke the 16,000 mark for the first time ever during the day, the S&P 500 peaked at 1,802 and the Nasdaq at 3,995.

“These are impressive gains by any normal measure, and it can be tempting to feel that a top cannot be too far away,” said IG’s David Jones. “But for now, with an accommodative Fed, it appears investors are more afraid of missing out on gains than losing in any immediate downturn.”

Yet the markets dropped back a touch on words of caution from legendary investor Carl Icahn.

Speaking at a Reuters investment summit in the US he said stocks could drop as earnings may be based on excessive borrowing.

The Dow Jones closed up 0.1 per cent at 15,976.02 and the S&P ended last night at 1,791.53, down 0.37 per cent. In the UK the FTSE 100 rose 0.45 per cent and the EuroStoxx increased 0.88 per cent.