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US stock futures were registering new records on the heels of President Donald Trump’s announcement that a new tax policy was imminent.
This helped refuel a rally trend in US stocks not seen since November 10 last year. There was a brief downward trend in the rally a few weeks ago after Trump withdrew from the Trans-Pacific Partnership trade deal and appeared to be pushing for protectionist measures.
But with his promises to increase infrastructure spending and lower corporate taxes to 15 per cent, the rally has been given new life.
At press time just ahead of markets opening in New York, the Dow Jones was up 0.48 per cent to 20,269 – a nearly 27 per cent surge year on year.
The Nasdaq composite index was up 0.33 per cent to 5,734, while the S&P 500 was up 0.36 per cent at 2,316.
It was the same story in Europe as the FTSE in London rose 0.20 to 7,273.28 while the DAX in Frankfurt jumped 1.06 per cent to 11,790.
In France, the CAC 40 gained 1.38 per cent to 4,894.90.
Overall, the DAX has been the best performing of the three in the past one month. Year on year, all three have gained by at least 22 per cent.
Monday’s European stock data has been the highest in 14 months.
This builds on sturdy growth in Asian markets Monday, from the Nikkei to the Hang Seng and benchmark Shanghai Composite, to South Korea’s Kospi.
The BRICS Post with inputs from Agencies