Business World

Sunday 20 May 2018

New Year share rally rolls on as banks up

Traders work on the floor of the New York Stock Exchange
Traders work on the floor of the New York Stock Exchange

Reuters

Stocks in world indexes continued their flying start to the year on Tuesday as bank stocks gained, while US oil touched its highest since late 2014.

A tweak to the Bank of Japan's bond-buying programme shunted the yen higher, while the dollar climbed against a basket of major currencies, recovering further from last week's decline to its lowest in more than three months.

Wall Street's main indexes hit record highs at the open, extending a winning streak since the start of 2018. MSCI's all-country world stocks index also posted another record high.

US stock investors remain upbeat about fourth-quarter earnings season, which begins on Friday with results from JPMorgan Chase, with the focus expected to be on any comments related to the just-approved US tax overhaul that includes hefty corporate tax cuts.

Citi analysts say global earnings revisions have now been upgraded for 14 weeks in a row, the best run of weekly upgrades since their data series started in 2000.

The Dow Jones Industrial Average rose 115.62 points to 25,398.62, in line with other US indices.

The S&P 500 has been up every day so far in the new year, providing more optimism on the outlook for the rest of the year.

European shares rose for a fourth straight session yesterday, lifted by strength among cyclical stocks and optimism about further growth in company earnings.

Expectations of possible dealmaking in the car industry and a weaker euro also helped.

The pan-European FTSEurofirst 300 index rose 0.44pc and MSCI's gauge of stocks across the globe gained 0.18pc.

Irish Independent

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