Belfast Telegraph

Donald Trump's US tax promises help global markets soar

By Ben Woods

Global markets have scaled record heights as investors cheered US President Donald Trump's pledge to slash taxes and unleash an infrastructure spending spree.

More than £30bn was added to the value of Britain's blue chip companies as the FTSE 100 Index soared 119.46 points to a record all-time closing high of 7,382.9.

Across the Atlantic, the Dow Jones Industrial Average was also soaring, as the US President's warmly-received speech to Congress inspired the index rise above the 21,000 points mark for the first time in its history.

Mr Trump struck a less confrontational tone during his speech on Tuesday, vowing to reform taxes, slash red tape and ramp up spending on defence and infrastructure projects.

It comes after the London market embarked on a remarkable winning streak at the beginning of the year - notching up 12 record closes on the bounce - as investors cheered Mr Trump's economic policies.

In Europe, the Cac 40 in France and Germany's Dax raced ahead, climbing 2.1% and 1.97% respectively.

As the London market closed, the Dow Jones and the S&P 500 were up 1.42%, while the Nasdaq Composite was 1.3% higher.

Jasper Lawler, senior market analyst at London Capital Group, said stocks in line to benefit from Mr Trump's proposed spending splurge were pushing the markets higher.

"A more inclusive speech from the US President has seen global stocks surge, taking the Dow Jones above 21,000 for the first time.

"There has been a lot of criticism for the lack of detail on how Trump plans to deliver his 'don't tax and spend' reforms. That misses the point of the speech.

"By bringing Congress on side, Trump's plans to 'restart the engine' of the US are a lot more likely to become policy."

Belfast Telegraph