The so-called Trump Rally could really boost chances of a Federal Reserve rate increase in December [Xinhua]
European stocks rallied on Monday’s market open, in tandem with their American counterparts which reached record gains on Friday.
Some analysts have called it the “Trump Rally”.
At press time, London’s FTSE 100 index was up 0.83 per cent to 6,786.62; France’s CAC 40 was up 1.15 per cent to 4,540.96, and in Frankfurt the DAX was up 0.98 per cent to 10,772.35.
Emerging markets have also felt the boost. In South Africa, the FTSE/JSE AFRICA Top 40 was up 0.79 per cent to 44,343.54.
In Russia, the MICEX was up 0.20 per cent to 2,036.08.
In Japan, all Nikkei indices were up, while China’s benchmark Shanghai Composite was up 0.45 per cent to 3,210.37 at press time.
The so-called Trump Rally began in earnest on Wednesday afternoon and hit peak on Friday when a report showed that consumer sentiment in the US had rebounded in early November, with the Thomson Reuters CSI index reporting on Friday a rise to 91.6 points from last month’s 87.2 points.
This is the highest level since mid-2016, as consumers appear to have slightly stronger confidence in the economy.
Coming off Republican Presidential candidate Donald Trump’s election win last week, the Dow Jones industrial average closed about 37 points higher on Friday, with Goldman Sachs contributing the most gains.
For the week, the Dow rose around 5.4 per cent – its best weekly performance since December 2011 – and a complete reversal from Tuesday’s and Wednesday’s shock reaction to Trump’s win.
“The Republican sweep across Washington should pave the way for tax reform at both the individual and corporate level. America’s largest multinational companies will almost assuredly have the opportunity to repatriate some of its foreign cash holdings for a modest penalty,” Jeremy Klein, chief market strategist at FBN Securities told CNBC.
Stocks and bank shares also soared, as investors hope that Trump’s win could spell more relaxed regulations in the financial sector as well as prospects for higher infrastructure spending.
The Nasdaq composite gained 28.32 points, or 0.54 percent, to 5,237.11.
The BRICS Post with inputs from Agencies
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