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GLOBAL MARKETS-Equities rise on Trump tax hopes, French vote relief

Published 26/04/2017, 01:36 am
© Reuters. GLOBAL MARKETS-Equities rise on Trump tax hopes, French vote relief
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* Wall St climbs, Nasdaq tops 6,000 mark

* Oil dips on doubts over OPEC's ability to reduce inventories

* Markets await Trump tax announcement on Wednesday (Updates with U.S. market open; changes byline, dateline; previous LONDON)

By Chuck Mikolajczak

NEW YORK, April 25 (Reuters) - Equity markets continued their advance on Tuesday and a gauge of world stocks notched a record for a second straight session, spurred by speculation about U.S. tax reform and relief at French election results.

Wall Street built on gains in the prior session, with the Nasdaq Composite index breaching the 6,000 mark for the first time. opinion polls have centrist Emmanuel Macron, who won the first round of the French presidential election, with a comfortable lead over far-right, anti-EU candidate Marine Le Pen in a May 7 run-off vote. assets such as gold and the Japanese yen retreated, while the yield gap between French and German short-term government bonds, a closely watched measure of political risk in the euro zone, hit its lowest in almost three months. DE2FR2=RR .

Bets on clarity regarding the tax code helped boost U.S. stocks, according to Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

"(Treasury Secretary Steven) Mnuchin has to have a better-articulated answer to what the tax code changes are in a meaningful way," she said, adding that markets were still in relief-mode after Sunday's French election results. "The EU is going to hang together most likely."

With concern over French elections on the wane, investors turned their focus to corporate earnings and U.S. President Donald Trump's promise to announce "a big tax reform and tax reduction" on Wednesday. Dow Jones Industrial Average .DJI rose 241.14 points, or 1.16 percent, to 21,005.03, the S&P 500 .SPX gained 14.57 points, or 0.61 percent, to 2,388.72 and the Nasdaq Composite .IXIC added 37.92 points, or 0.63 percent, to 6,021.73.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.27 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.62 percent after touching a high of 456.34.

French shares .FCHI were up 0.2 percent, after a 4.1 percent surge on Monday, their biggest daily gain since August 2012.

The euro EUR= added to Monday's gains against the dollar, up 0.6 percent to $1.0932.

The Canadian dollar CAD= fell 0.8 percent to C$1.3611 per U.S. dollar after the United States announced new duties averaging 20 percent on Canadian softwood lumber imports. Japanese yen weakened 1.08 percent versus the greenback at 110.98 per dollar, while Sterling GBP= was last trading at $1.2838, up 0.35 percent on the day.

Gold, also seen as a safe-haven asset, fell. Spot gold XAU= dropped 0.6 percent to $1,267.18 an ounce. U.S. gold futures GCcv1 fell 0.65 percent to $1,269.20 an ounce. prices continued to slump as doubts about OPEC's ability to reduce global crude inventories put the price on track for its six fall in seven days. crude CLcv1 fell 0.26 percent to $49.10 per barrel and Brent LCOcv1 was last at $51.57, down 0.06 percent on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets in 2017

http://reut.rs/1WAiOSC Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Global bonds dashboard

http://tmsnrt.rs/2fPTds0 Emerging markets in 2017

http://tmsnrt.rs/2ihRugV

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