Asian shares follow US markets higher after Donald Trump promises to reveal a ‘phenomenal’ tax plan in the next few weeks
7.59am GMT
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Asian markets have made strong gains following new record highs on Wall Street and a stronger dollar. The reason for this renewed investor optimism is the promise of more stimulus in the US.
The move to new record highs in equity markets and surge in the US dollar are symptomatic of a market craving a new stimulus. The risk is that as with most oases they turn out to be an illusion, and given the new President’s propensity for melodrama the risk is that this could well be no different.
It is hard to imagine that he will be able to promise anything tangible within a two to three week window, however whatever the realities investors appear happy to take him at his word, as US markets closed well above their previous peaks, while the US dollar index looks set to post its first positive week this year.
Our European opening calls:$FTSE 7256 +0.37%
$DAX 11690 +0.40%
$CAC 4854 +0.58%$IBEX 9477 +0.41%$MIB 19026 +0.41%
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