Global stocks hit record highs on job, tax-cut hopes, oil gains | Reuters
By Richard Leong | NEW YORK NEW YORK Stock prices climbed to record highs worldwide for a third straight session on Thursday, propelled by an oil rally after a surprise drop in U.S. crude inventories and comments from U.S. President Donald Trump and his Treasury chief on plans for job creation and tax reform.The dollar was bogged down a day after minutes from the Federal Reserve's latest policy meeting showed the U.S.
By Richard Leong
| NEW YORK
NEW YORK Stock prices climbed to record highs worldwide for a third straight session on Thursday, propelled by an oil rally after a surprise drop in U.S. crude inventories and comments from U.S. President Donald Trump and his Treasury chief on plans for job creation and tax reform.The dollar was bogged down a day after minutes from the Federal Reserve's latest policy meeting showed the U.S. central bank was in no rush to raise interest rates.Treasury and euro zone government bond yields declined as European Central Bank policymakers also signalled they were not getting carried away by signs the euro zone economy is gathering strength.This outlook for policy accommodation lifted gold prices to a three-month high near $1,250 an ounce.Equity markets around the world have advanced this year as traders bet on tax cuts, less regulation and more infrastructure spending from Trump and the Republican-controlled Congress to bolster the U.S. economy.Details on these stimulus programs have been sparse, raising doubts whether bigger corporate profits will materialise.On Thursday, U.S. Treasury Secretary Steven Mnuchin spoke of wanting to see "very significant" tax reform passed before Congress' August recess and said the Trump administration was looking closely at border tax issues.
"That's starting to put some details on tax reform. That's reigniting some of the animal spirits," said Bill Northey, chief investment officer for the private client group at U.S. Bank in Helena, Montana.Trump told executives at major U.S. companies he has a plan that includes tax cuts and infrastructure spending to create millions of domestic jobs.The MSCI world equity index .MIWD00000PUS, which tracks shares in 46 nations, rose 0.15 percent to 446.69 after touching a record peak at 447.67.On Wall Street, the Dow Jones Industrial Average booked an all-time intraday high for a 10th straight day, while the S&P 500 touched a record high before retreating. Nasdaq fell for a second day, suffering its biggest one-day loss so far in February.
The Dow .DJI ended up 34.72 points, or 0.17 percent, at 20,810.32; the S&P 500 .SPX finished 0.99 point, or 0.04 percent, higher at 2,363.81 and the Nasdaq Composite .IXIC closed down 25.12 points, or 0.43 percent, at 5,835.51.Europe's broad FTSEurofirst 300 index .FTEU3 finished 0.2 percent lower at 1,470.18, scaling back from a 14-month peak set on Wednesday.Tokyo's Nikkei .N225 ended down 0.04 percent.Gains in energy shares due to a jump in oil prices helped lift the equity market.
Brent crude LCOc1 settled 74 cents or 1.33 percent higher at $56.58 a barrel. U.S. crude CLc1 settled up 86 cents or 1.6 percent at $54.45. [A weaker dollar in the wake of Fed minutes that were perceived as less hawkish whetted appetite for gold and bonds.The dollar index .DXY slipped 0.3 percent to 100.96.The benchmark 10-year U.S. Treasury note yield US10YT=RR hit a two-week low, last down 3 basis points at 2.388 percent. The German 10-year Bund yield DE10YT=RR decreased 4 basis points at 0.233 percent, hovering at its lowest level since early January.Spot gold XAU= rose $11.52 or 0.93 percent, to $1,248.83 an ounce. (Additional reporting by Marc Jones, Nigel Stephenson, Atul Prakash and Dhara Ranasinghe in London, Nichola Saminather in Singapore, and Aaron Sheldrick in Tokyo; Editing by Nick Zieminski and)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.