Dow breaks record as global equities rise

Traders work on the floor of the New York Stock Exchange (NYSE) on November 22, 2016, in New York City. U.S. stocks continued their advance into record highs on Tuesday with the Dow Jones Industrial average hitting 19,000 for the first time. AFP

NEW YORK, United States — Wall Street’s post-election rally forged ever higher Tuesday, with the blue-chip Dow Jones Industrial Average finishing above 19,000 for the first time while stock indices across the globe also rose.

The Dow finished up 0.4 percent while the broader S&P 500 and tech-heavy Nasdaq likewise had record finishes, gaining 0.2 percent and 0.3 percent respectively.

US markets are betting that the incoming administration of President-elect Donald Trump will pursue growth-oriented policies including tax cuts, a ramp-up of infrastructure investments and fewer regulations.

“If you look at the board, you see a lot of stocks, of sectors that are responding to the economic plan,” said Peter Cardillo, chief market economist at First Standard Financial. “That’s what continues to fuel the rally.”

Among the Dow’s biggest gainers, Home Depot jumped 2.2 percent following a report from the National Association of Realtors which showed US sales of existing homes had risen in October at the highest pace in nearly a decade.

In London, stocks added 0.6 percent, buoyed by news of smaller-than-expected government borrowing. Frankfurt and Paris also posted gains.

“Equities are positive across the board as European trading closely echoes both the US and Asian sessions that preceded it,” said Henry Croft, research analyst at trading firm Accendo Markets.

A quake in Japan

In Asia, markets rose with energy stocks also tracking rising oil prices, while Tokyo hit a fresh 10-month high after an early sell-off prompted by a huge earthquake off the northeast coast.

The quake struck around dawn in the same region as the deadly 2011 tsunami, sparking fears of another tragedy. But while it caused some tsunamis they were not as high as five years ago.

The yen strengthened against the dollar after the quake as investors sought out safe-haven assets but gave up most of the gains as it emerged there was no major damage.

Hopes that the Organization of the Petroleum Exporting Countries and Russia will be able to hammer out an agreement to cut production have lit a fire under crude prices and in turn energy stocks.

“A growing number of oil analysts seem to agree with the markets that the OPEC will be able to agree on some sort of a deal with Russia to curb crude production,” said market analyst Fawad Razaqzada at online trading group Forex.com.

While oil prices remain generally supported, he said it is within “a market structure that is characterized by lots of false moves and indecisive price action. I am expecting to see further choppy price action until at least after the OPEC meeting.” CBB