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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.