Asia markets follow US lead

Asian markets rose Monday following records on Wall Street last week on hopes that President Donald Trump’s tax reforms would breathe new life into the US economy.

Both the S&P 500 and Nasdaq ended at records, with investors buoyed by expectations of strong earnings ahead of the third-quarter corporate reporting season, which kicks off in about two weeks.

European equities also closed the week higher, with Frankfurt gaining 1.0 percent and London and Paris both up by 0.7 percent.

“Stock market euphoria rages on propelled by tax cuts and perhaps a misguided belief that history will repeat itself as equity markets have risen seven times in the last eight years between October and December,” said Stephen Innes, head of Asia-Pacific trading at OANDA.

“But traders will continue to be vigilant as they search the news tickers for headline clues as to who the next Fed Chair will be, and how the tax reform process is going,” he added.

Via AFP

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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