The prospect of US lawmakers passing the most radical rewriting of corporate taxes and revenues since the Reagan era continued to drive world stocks higher on Monday, boosting gains in US futures, European equities and most of the Asian markets.
at a 0.6% gain for the Dow Jones Industrial Average, which closed Friday at its 69th close of the year amid indications that lawmakers were approaching an agreement on the tax review. The Stoxx Europe 600 rose 1
Stock prices have moved in line with the likelihood that the plan will be signed in the last sessions. Negotiations with hesitant legislators late last week left Republicans ready to pass their bill as early as Tuesday and send it to President Donald Trump's desk.
"It's seen as good for big corporations and it's considered good for the economy," said Alex Dryden, global market strategist at JP Morgan Asset & Wealth Management. "It's like a steroid in the arm for the US market."
Some economists doubt that fiscal rewriting will materially boost US economic growth. Although corporate tax cuts are expected to increase the company's profits and increase earnings for shares. The tax cuts will also occur in a context of synchronized global growth, which many investors believe should continue to encourage markets.
"Throughout the year, the macro outlook [de[economic] improved markedly," said David Page, senior economist at Axa Investment Managers, who expects another decent year of growth in 2018.
"We believe that equities and other risk assets [can] continue to prosper, "he said.
Sectors with a strong performance in Europe on Monday including real estate, technology and automobiles, which exceeded 1%.
The shares of France's Thales SA rose 8% after the defense and the aerospace company announced they had agreed to buy the chip maker Gemalto NV for 4,800 million euros. Gemalto shares rose 5.8%.
Actions in a commercial company
IG Group Holdings
PLC fell almost 11% after EU and UK regulators said they were considering leveraging limits for retail clients and banning certain types of options contracts.
In the Asia-Pacific region, Japan's Nikkei Stock Average broke its streak of four consecutive days by 1.6% higher thanks to gains of more than 2% for financial stocks. Finance also helped boost the markets in Hong Kong and Australia, with both indexes rising 0.7%.
Trade in the Indian stock market was volatile after some reports hinted that the Prime Minister
party may have been short in two state elections. The Sensex benchmark index in India initially fell to 2.6%, before recovering to trade 0.4% after local media reported that Modi's party had won.
In currencies, the WSJ dollar index, which measures the dollar against a basket of 16 other currencies, fell by 0.2%. In the bond markets, the yield on the 10-year Treasury note rose to 2,370% from 2,353% on Friday, according to Tradeweb. Yields increase as prices fall.
-Kenan Machado contributed to this article.
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