NEW YORK CITY, New York – Global stocks felt a surge in stock prices on Tuesday. Euro zone business activities climbed to a high in six years. U.S. dollar gained after aggressive statements from the Federal Reserve officials.
The recharged possibility of a U.S. interest rate hike next month has affected gold prices. The demand for risky assets also weighed on gold prices. The developments propelled bond rates higher. This happens before bonds retreated on safe-haven demand amid polls declared Marine Le Pen, an anti-EU and an anti-immigrant French presidential candidate, leading the race.
Oil futures went up after OPEC made a statement that it remains to be steadfast to its deal of output reduction.
The equity markets’ rally on the global stocks has been fueled by hopes of tax cuts and infrastructure spending. It was the Wall Street who led the market rally as they are expected to benefit the most from Trump’s proposals. The U.S. President inked Executive Orders on looser banking regulations by setting aside Dodd-Frank Policy.
Particulars on U.S. fiscal stimuli is still unclear. Although, investors seem to be patient for progress on these programs. Investors remain to be currently moderated by positive company results.
Rick Meckler, president of New Jersey-based LibertyView Capital Management, said there was a time last week when investors were getting a little worried. The uncertainties and vagueness on the Trump administration policies were thought to be doubtful.
He added that days later after gloom, investors in global stocks regained optimism as financial performances of companies showed positive reports.
World stock index of MSCI .MIWD00000PUS which keeps track global shares that include 45 nations, gained 0.42 percent to an all-time high of 446.21.
Wall Street felt the most positive impact of reports. Dow Jones Industrial Average .DJI was up 118.95 points, or 0.58 percent. It closed at 20,743. The S&P 500 .SPX rose 0.60 percent or an equivalent of 14.22 points. It ended at 2,365.38 points. Nasdaq Composite .IXIC climbed 27.37 points, or 0.47 percent, and closed at 5,865.95 points.
The three U.S. stock indices reached new record highs. This was mainly attributable to strong earnings reports from retailers including Wal-Mart yet affected the global stocks.
Europe’s benchmark index of 300 leading shares .FTEU3 records a new high since December 2015. It closed 0.6 percent higher at 1,471.87 points. Purchasing manager index (PMI) reports disclosed that the economy of the euro zone is expanding at a much faster rate. The expansion is taking place more smoothly that it exceeded expectations of analysts.