The mood was less upbeat in Asia after China said Friday it would ramp up a local debt ceiling, but fell short of announcing any new growth-boosting measures
European and US stocks mostly jumped, while the dollar gained and bitcoin extended a record run on Monday, as traders took their lead from events in China and the US.
Chinese stock markets ended mixed and oil prices slipped after China’s latest plans to stimulate its economy fell short of expectations.
US’ three main indices pushed into record territory at the opening bell.
Last week’s huge post-election rally hasn’t run out of gas yet, said Briefing.com analyst Patrick O’Hare.
Stocks rallied last week on hopes that a second Donald Trump administration would push through a flurry of business-friendly policies including deregulation and tax cuts, offsetting concerns about possible trade wars.
O’Hare said there were no new developments fuelling the rise.
In effect, it is a carryover of the ‘old’ news of the election outcome powering an ongoing momentum trade and a fear of missing out on further gains, O’Hare said.
But the S&P 500 cut its gains during morning trading and the Nasdaq Composite was essentially flat as European markets closed.
All that remains to be seen is when this rally effort runs out of gas, he added.
Another reduction in US interest rates by the Fed also helped fuel the record run last week.
While Federal Reserve officials refused to provide further guidance until updated projections are ready for its December meeting, the market still largely expects it to lower rates again then.
If more rate cuts from the Fed continue to be what is expected, then we could see further positive sentiment in US stocks, according to Daniela Sabin Hathorn, senior market analyst at Capital.com.
Bitcoin reached an all-time high above $84,000 Monday on optimism that Trump would ease regulations surrounding the crypto currency.
European stocks saw solid gains.
European markets are enjoying an upbeat start to the week, with the uncertainty around trade relations with the US seemingly being put on the backburner, according to Joshua Mahony, analyst at traders Scope Markets.
The mood was less upbeat in Asia after China said Friday it would ramp up a local debt ceiling, but fell short of announcing any new growth-boosting measures.
Hopes had been building all last week that officials would deploy a “bazooka” stimulus, the need for which was highlighted Sunday by data showing Chinese inflation slowed last month and came in below forecasts.
Authorities in late September began unveiling a raft of policies aimed at boosting the economy, which has failed to come to the pre-pandemic levels.
