After Wall Street finished at all-time high levels previously, US stock index futures moved higher and hinted to an extension of the post-election rally on Tuesday’s session.
Wall Street had hit a record level last seen in 1999 on bets that President-elect Donald Trump's policies would spur growth. This, and oil prices reaching their highest level since October, have also put a slipstream of rally for other global stocks.
The small cap Russell 2000 index touched a record high on Monday, marking the first time since December 1999 that all four major Wall Street indices closed at record levels on the same day.
Stocks rise on Trump policies
The appeal of potential tax cuts, higher spending on infrastructure and more minimal regulations in the banking and healthcare industries under Trump's administration have started a long string of rally, especially in these sectors, since the election.
Additionally, Trump swore to pull out from the Trans-Pacific Partnership (TPP) trade agreement as he drew his plans on Monday for his first day in office on January.
The Nataxis head of equities strategy, Sylvain Goyon, stated that “The fact Trump was elected means it is now seen as certain that you will see a rise in inflation and that the (Federal Reserve) is going to hike rates. Some of his strategies are really pro-growth.”
Dow Jones Industrial and S&P futures touched record levels overnight; the S&P 500 financial sector has jumped more than 11% since the November 9 election, while the industrial sector has climbed 5.6%.
With US stocks climbing, world stocks were also influenced by this surge. Asia's top bourses had made solid gains overnight despite a strong signal from Trump that he will disturb trade with the region.
Europe's main bourses were also quickly gaining: London's FTSE, Frankfurt's DAX and Paris’ CAC 40 surged between 0.6-0.8% in early trade.
Oil nudges $50 a barrel
Meanwhile, oil prices had carried the momentum into early morning trade on Tuesday’s session. Crude oil soared to its highest level in November as investors expect that the OPEC would discuss and come to agreement in cutting production and hiking prices.
Oil prices climbed 4% on Monday, reaching $50 a barrel once more. Russian President Vladimir Putin had sparked hopes that oil producers will commit to a deal in limiting output at an OPEC meeting scheduled next week.
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