Global Markets Rally On

TOKYO (AP) — Shares were higher Tuesday in Europe and Asia as the rally driven by the outcome of France’s vote persisted. Hopes for U.S. tax reform and a compromise on the U.S. budget deadline also lifted sentiment.

KEEPING SCORE: France’s CAC 40 edged 0.1 percent higher to 5,275.32, while the FTSE 100 of Britain jumped 2.1 percent to 7,264.68. Germany’s DAX was steady at 12,456.89. U.S. shares looked set for gains with Dow futures up 0.2 percent and S&P futures up 0.1 percent.

FRENCH FACTOR: Investors were encouraged that Emmanuel Macron, a candidate who investors see as pro-business, got the most votes in the first round of France’s presidential election. That raised expectations that the European Union may hold together, lifting shares in most world markets.

TAXES AND SPENDING: U.S. President Donald Trump promised to release Wednesday the outlines of a tax plan that a senior administration official confirmed would pledge to slash the corporate tax rate to 15 percent from 35 percent. Meanwhile, lawmakers were making progress toward a budget deal to prevent a partial federal shutdown this weekend. That efforts was helped by Trump backing away from demands that money be included to build his wall on the border with Mexico.

ANALYST VIEWPOINT: “Global equities rejoiced over the French election results overnight,” Stephen Innes of OANDA said in a commentary. But he added that “investor focus remains on international tensions with North Korea; the tax reform plan slated for this Wednesday, and a possible government shutdown entering weeks’ end.”

San Francisco Chronicle

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Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes