💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

GLOBAL MARKETS-Stocks on the march as "Trump trades" bounce back

Published 2017-02-13, 07:31 a/m
© Reuters.  GLOBAL MARKETS-Stocks on the march as "Trump trades" bounce back
EUR/USD
-
USD/JPY
-
US500
-
DJI
-
DE40
-
JP225
-
STAGn
-
HG
-
LCO
-
ESU24
-
IXIC
-
US10YT=X
-
STOXX
-
VIX
-
VIX
-
MIAPJ0000PUS
-

* Europe, Asia follow Wall Street's lead

* Yen slips on cordial Trump-Abe summit

* VIX at depressed levels

By Jamie McGeever

LONDON, Feb 13 (Reuters) - World stocks and bond yields rose on Monday, lifted by a re-emergence of so-called "Trump trades" as investors bet that the U.S. president's tax reform plans will boost economic growth and corporate profits.

Following on from Friday's record high closes on Wall Street, Asian stocks rallied to 1-1/2-year peaks and a broad measure of pan-European stocks hit its highest since late 2015.

The Japanese yen was the biggest underperformer among major currencies, as is typical when riskier assets such as stocks are doing well.

Investors were also comforted by the two-day U.S.-Japan summit held over the weekend apparently having ended smoothly without President Donald Trump talking tough on trade, currency or security issues. reflation pricing remains the major driver in the U.S. stock markets, and thirsty investors are waiting for more details on Trump's corporate tax cut plans," said Ipek Ozkardeskaya, senior market analyst at London Capital Group.

The STOXX 600 .STOXX , Europe's leading index of top 600 shares, rose 0.6 percent to 369.51 points, the highest in over a year. Mining and basic resources sectors were among the leaders.

Germany's DAX .GDAXI was up 0.9 percent, led by a 15 percent rise in drugmaker Stada STAGn.DE after the company said it had received two offers for the acquisition of the company, one of which is private equity group Cinven Partners LLP. broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.5 percent, while Japan's Nikkei .N225 rose 0.4 percent.

U.S. futures pointed to a higher open on Wall Street ESc1 . The S&P 500 .SPX , Dow Jones Industrials .DJI and Nasdaq Composite .IXIC all posted record closing highs on Friday.

NO FEAR

Comments from Trump on Thursday that he plans to announce what he said would be the most ambitious tax reform plan since the Reagan era in the next few weeks rekindled hopes for big tax cuts. data from major economies has also been upbeat, including Friday's Chinese trade figures, while U.S. corporate earnings have been also solid so far. Brooks, research director at City Index in London, noted that the VIX measure of U.S. stock market volatility .VIX closed last week below 11 for the third week in a row.

The last time this happened was over a decade ago.

"This is another sign that, for now, the Trump trade is still on. It also suggests that even with the controversy Trump has caused since he took office, financial markets are still willing to give him the benefit of the doubt," Brooks said.

In the weekend meeting with Japanese Prime Minister Shinzo Abe, Trump held off from repeating harsh rhetoric that accused Japan of taking advantage of U.S. security aid, stealing American jobs and "playing money markets". Nor were currency issues discussed. apparently cordial discussions drove the dollar as much as 0.9 percent higher against the yen to 114.17 yen JPY= . It last stood at 113.65 yen, up 0.4 percent on the day and extending its rebound from a 10-week low of 111.59 yen touched last week.

Figures on Monday showed that Japan's economy grew for a fourth straight quarter in the final three months of last year as a weaker yen supported exports, but doubts over the sustainability of the recovery persisted. euro's rise of 0.5 percent against the yen to 121.00 yen EURJPY= , helped steady the European currency against the dollar. The euro was last unchanged on the day at $1.0640 EUR= , inching further away from Friday's three-week low of $1.0608.

The euro has been dogged by fears about a strong showing for French far-right leader Marine Le Pen ahead of a presidential election.

Ten-year U.S. Treasury yields rose 3 basis points to 2.44 percent US10YT=RR .

In commodities, copper CMCU3 hit its highest levels since May 2015 after shipments were shut off from the world's two biggest copper mines - due to a strike in Chile and an export's ban by Indonesia. last traded at $6,126 per tonne, up 0.6 percent on the day. On Friday it jumped more than 4 percent, its biggest one-day rise in almost four years.

Oil prices dipped slightly after strong gains on Friday on reports that OPEC members delivered more than 90 percent of the output cuts they pledged in a landmark deal that took effect in January. benchmark Brent crude futures fell 0.4 percent LCOc1 to $56.45 per barrel.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Shanghai CSI 300 and global effects interactive

https://t.co/YqIYLIbInP Chinese A-shares vs developed and emerging stocks

http://link.reuters.com/rac25w

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.