Asian Markets Extend Global Rally

Rumors about the demise of reflation trades look to have been at least a little exaggerated.

Asian stocks extended a global rally as investors looked ahead to data that will provide detail on the strength of U.S. consumer prices and speeches from a range of Federal Reserve officials. The yen weakened Monday after the S&P 500 Index climbed to a record high on Friday. Iron ore surged and copper climbed, buoying commodity producers across Asia.

Stock investors last week pushed the global index higher for a third week, while Trump’s promise of a “phenomenal” tax plan snapped a six-week losing streak for the Bloomberg Dollar Spot Index that represented its longest such slump since 2010. The rebound in the latter half of last week saw some of this year’s angst recede after a crescendo of speculation that the so-called Trump reflation trade was withering.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.