The renewed optimism over global economic growth has rekindled investors’ risk sentiment, resulting in global equities lurching to all-time highs this week. Asian markets were firmly bullish during trading on Wednesday with the risk-on trading mood encouraging participants to propel European markets to uncharted territories. Wall Street may be set to benefit further from the heightened speculations of tax cuts and deregulations boosting U.S. economic growth.
European stocks rose on Monday, with gains in telecoms and banks offsetting a big fall in Unilever, while the dollar dipped as uncertainty over politics and the timing of a U.S. interest rate rise kept investors nervous.
The increasing levels of volatility the Greenback has dished out this month continues to highlight how the currency remains entangled in a fierce tug of war between the Fed hawks and President Trump. Although it may be clear that Trump may want a weaker dollar to help U.S. exports become competitive on the global markets, the heightened expectations of a proposed expansionary fiscal plan which will be supportive of US growth may uplift the Greenback.
Stock markets were explosively volatile this week, with most areas sprinting into record levels as the mixture of stabilizing oil prices and improving economic data across the globe boosted risk appetite.
Global equity markets were set to end the week on a softer footing on Friday, after setting record highs in the previous two sessions, as investors looked for clarity on U.S. President Donald Trump's tax and trade policies.
Although Donald Trump policies will remain to be the key moving indicators for financial markets in the days and weeks to come, central banks and economic data will attract some attention the week ahead.
Global stocks marched into gains during trading this week after the renewed Trump fuelled optimism bolstered investor risk sentiment. Actions speak louder than words and the fact that Donald Trump has signed numerous executive orders since his inauguration continues to heighten hopes of the proposed fiscal stimulus measures materialising.