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Global stock markets gain as US indices end at records again

Jan 10 2018 07:34

New York - Global stocks pushed higher on Tuesday, with US indices again ending at records, as eurozone data showed unemployment falling to its lowest level since January 2009.

Wall Street stocks have been on a roll since early December as Congress mobilized behind a US tax cut plan that President Donald Trump signed into law just before Christmas.

Investors appeared to waiver a bit on Monday with the Dow falling for the first time in 2018 ahead of key earnings reports later in the week, but bullish sentiment ruled the day again on Tuesday.

"We are beginning to see the 'fear of missing out' mindset," said Sam Stovall, CFRA Research's chief investment strategist. "Investors are taking their money and throwing it at stocks."

Of the three major US indices, the Dow rose the most, boosted by banking shares and a 2.7% surge in Boeing, which reported record 2017 commercial plane deliveries and offered a positive outlook on the 2018 market.

The S&P 500 and Nasdaq also rose, finishing at records for the sixth straight day.

Frankfurt's DAX 30 ended the session 0.1% higher, while the Paris CAC 40 jumped 0.7% - as data showed eurozone unemployment falling to the lowest level for nine years in the single currency area.

The EU's official statistics agency said that the jobless rate in the single currency area fell to 8.7% in November from 8.8% in October, in line with analyst expectations.

Other equity markets to advance included London, Tokyo and Hong Kong.

Despite the gains, Oanda analyst Craig Erlam said markets were entering "wait and see mode ahead of the start of the earnings season."

"Equity markets in the US are trading at record highs and with high expectations for earnings season already baked in, there may be an element of caution among investors who will be eagerly anticipating the first batch of results," he said.

Oil prices in London and New York finished at three-year highs ahead of a closely-anticipated weekly US oil inventory report on Wednesday.
Oil analysts are also watching for potential disruptions in supplies from Venezuela and Iran.

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