Donald Trump has acclaimed “big cuts in unnecessary regulations” as he welcomed a Wall Street rally that saw the Dow Jones Industrial Average break above 25,000 for the first time.
The upturn for the New York stock index came on the same day as London’s FTSE 100 also hit a new all-time record, with optimism on the world economy lifting global shares.
That was after figures showed US private sector employers stepped up hiring in November and planned lay-offs by American-based companies fell sharply.
There were also strong signs of manufacturing and services sector growth in other major economies, including the UK.
The latest milestone for the 30-member Dow Jones index came after it crossed the 20,000 mark in early 2017 and has continued to race higher, spurred by Mr Trump’s pro-growth agenda and solid corporate earnings.
A tweet by the President on Thursday welcoming the new high appeared to see him claim credit for cutting through red tape.
Dow just crashes through 25,000. Congrats! Big cuts in unnecessary regulations continuing.
— Donald J. Trump (@realDonaldTrump) January 4, 2018
Wall Street’s wider S&P 500 index, and the tech-heavy Nasdaq, have also been part of the rise – buoyed further towards the end of 2017 by the passing of tax-cutting laws by the US congress.
In London, the FTSE 100 spiked to a new all-time high as it topped 7700 for the first time to reach 7702.5, before ending the session at 7695.9.
The upturn was driven by oil heavyweights Shell and BP – as turbulence in Iran helped the price of Brent crude top $68 (£50.20) – as well as global commodity giants such as Glencore and Anglo American.
But the performance in London was hampered by a tough session for retailers such as Marks and Spencer after a profit warning from department store Debenhams.
It was the latest record level for the FTSE 100 after it hit all-time highs a number of times during a “Santa rally” in December.
Elsewhere on Thursday, Germany’s Dax and France’s Cac 40 were up by around 1.5% while Spain’s Ibex rose 2% and Italy’s MIB by nearly 3%.
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The FTSE 100 has risen sharply over the last year, with its value more closely aligned to the fortunes of its globally focused businesses rather than the slowing British economy.
It has also been helped by the weakness of the pound, which makes those companies’ earnings worth more when translated into sterling.
Source: Sky