Trump rally to push markets to new heights

STOCK markets across the world are poised to continue their climb today after reaching new highs in the wake of Trump’s election victory.

Investors had feared Armageddon on financial markets as Donald Trump swooped to success in the US Presidential Election last week.

But after a short slip, markets bounced back and the US stock market reached an all-time high on Thursday.

The Dow Jones index soared 4.7pc, or more than 850 points, over the course of the week to finish on Friday at 18,847.66.

The S&P 500 climbed 3pc and the Japanese stock market turned around a fall on Wednesday to finish the week almost 250 points higher than it began at 17,375.

Sterling rallied more than 5pc against the euro and the dollar. A $1trillion bond sell-off, fuelled by confident investors moving from safe havens back to equities, sent yields up.

The yield on 10-year Treasury Bonds has climbed from 1.6pc to 2.2pc over the past six weeks, boosted by the likelihood of a Fed interest rate rise and the return of higher inflation. Gold tumbled after an initial surge. Jittery investors had ploughed money into the precious metal as a flight to safety, but took their cash back out as confidence returned sending the price down 5.4pc to $1,233 an ounce.

David Buik, market commentator at Panmure Gordon, said: ‘After an initial meltdown, equity markets suddenly found there might initially be some positive things for business from the Trump Presidency.’

Investors will be paying close attention to builders and construction firms this week as an increase in infrastructure spending in the US is expected to boost their fortunes, while oil giants are likely to profit from a fossil fuel revival.