Wall Street rallies, 'political intrigue' boosts euro stocks

New York - Wall Street hit a trifecta of record finishes on Monday on all the major stocks indices while the weekend's fast-paced "political intrigue" in Europe sent equities there higher as well.

Rising oil prices saw energy stocks spike, helping push the major indices higher in New York.

Facebook also posted a four percent gain after Friday's announcement of a share buyback.

The tech-heavy Nasdaq gained 0.9%, the broad-based S&P 500 rose 0.8% and the Dow Jones Industrial Average of blue-chip stocks was up 0.5%.

Since Donald Trump's shock victory in this month's US presidential election, investors have pumped capital into financials, tech and industrial stocks on hopes of looser regulation, and a wave of stimulus and infrastructure spending.

Hopes for a limit on output by oil producing countries will be announced this week prompted oil prices to jump Monday, with light, sweet crude finishing up $1.88 in New York. The Organisation of the Petroleum Exporting Countries (OPEC) is due to conclude a two-day meeting on Tuesday.

Bill Lynch of Hinsdale Associates told AFP investor enthusiasm was an extension of last week's exuberance and also a result of optimism on the oil markets.

"What drove the market today is just momentum on the upside, the carryover of last week, and the fact oil prices are up today about four percent on renewed optimism OPEC will reach a deal to cut production by the end of the month," he said.

Meanwhile, politics in Europe helped bolster the euro and push European stocks higher, dealers said.

Signs of stability

German Chancellor Angela Merkel announced Sunday she will seek a fourth term in elections next year in the face of looming threats at home and abroad, ending months of feverish speculation.

And the shock winner of the first round of France's right-wing presidential primary was conservative ex-premier Francois Fillon, who is tipped to face - and beat - far-right leader Marine Le Pen in the presidential run-off next May.

Former president Nicolas Sarkozy crashed out.

"An empty economic calendar allowed some eurozone political intrigue to grip the markets this Monday, the region finally (if briefly) taking its turn in the spotlight following the more attention-grabbing moves made in the UK and US," Spreadex analyst Connor Campbell said.

"The fact that this political news suggests stability in a region standing on the precipice of potential chaos has also helped out the eurozone indices," Campbell added.

Paris closed 0.6% higher but most of the gains in Frankfurt slid away. The Bundesbank added to the good news by saying the German economy would pick up speed again in the final months of the year following a summer slowdown.

The DAX 30 closed with a gain of 0.2%. London meanwhile edged up 0.03% as investors scrutinized a speech by Prime Minister Theresa May for clues about economic policy and the British government's budget update due this Wednesday.

In Asia, Tokyo stocks rose further as the dollar consolidated gains against the yen, but other markets struggled on uncertainty over a Trump presidency.

The dollar hit ¥111.19 at one point, a level not seen in almost six months. In later European trading, the dollar fell against both the yen and euro.