Global stocks extend rally after Wall Street breaks historical record

Global stocks rallied higher Thursday after Wall Street bulldozed its way to another record peak, as investors rediscovered their fervor for US President Donald Trump's pro-spending policies, dealers said.

The Dow Jones broke a historical record, ending above 20,000 for the first time, while the S&P 500 and Nasdaq also closed at all-time highs as investors shifted back to higher-yielding investments and away from safe bets such as bonds.

Tokyo spearheaded the surge in Asia after New York's Dow Jones Industrial Average finally breached the crucial psychological barrier of 20,000 points.

Europe followed suit, with London buoyed also by fresh evidence that Britain's economy is shrugging off the impact of Brexit.

The British economy grew by 0.6 percent in the final three months of last year and by 2.0 percent over 2016, official data showed, as the country prepares for departure from the European Union later this year.

"Equity markets throughout Asia and Europe have once again followed the positive momentum from the United States, where the Dow Jones Index finally broke the magical 20,000 number with the general consensus being that the Trump rally has resumed," said analyst Jameel Ahmad at trading firm FXTM.

"This week alone the S&P 500, Nasdaq and the Dow Jones have all reached historical highs."

Enthusiasm for Trump

After weeks of unease across trading floors, investors around the world have refound their enthusiasm and optimism that fuelled a surge in the two months after Trump was elected president.

The latest lease of life comes after the tycoon signed a series of executive orders pushing his pro-growth agenda, including giving the green light to two huge, controversial oil pipeline deals through the United States.

There are hopes he will press on with other promises to ramp up infrastructure spending, cut taxes and do away with various regulations he considers a hindrance to businesses.

Added to this were upbeat earnings reports from big-name firms including Boeing and United Technologies.

Asian dealers tracked their counterparts on Thursday, with Tokyo ending 1.8 percent higher.

Hong Kong added 1.4 percent and Shanghai gained 0.3 percent on the last day before a week-long Chinese Lunar New Year break.

Related Articles

Back to top button