The Trump rally seemed to have disappeared as Christmas turned into the New Year. However, with the thin-skinned President now in power and talking about stripping back regulations and building his infamous wall, investors have begun to get excited all over again. Following yesterday’s late rally the Dow Jones rose by 130 points as the bell rang on Wall Street, in the process breaking that 20k psychological barrier.
These good vibes travelled over to Europe, where the DAX and CAC rocketed 2% and 1.2% respectively. That leaves the German index at its highest point since May 2015, and only 600 points from its own all-time record.
It wasn’t all explosive growth for the Western markets this Wednesday. The FTSE could only manage a paltry 0.3% rise, laughable in the face of what was produced elsewhere, thanks to the pound’s continued recovery. With Theresa May announcing that the government would produce a Brexit whitepaper sterling’s early growth was firmed up, the currency benefiting from the increasing clarity on the how Britain intends to divorce the EU. Against the dollar is jumped by 0.7%, hitting its best level since mid-December, while against the euro it crossed 1.17 for the first time since January 6th. It will be interesting to see if the pound can continue to build on these gains tomorrow, especially if a bill on Article 50 is actually produced.