Money Minute – April 26 2017 Stock Market Records

Stock Market Records

World stock market overnight hit a new all-time high thanks to optimism after the French election runoff and an anticipation about Donald Trump’s impending announcement about tax cuts.

Now this is the MSCI all country world index, it measures stock markets of 23 developed and emerging nations around the world and from the depths of the global financial crisis in 2009 this index is increased one hundred and fifty four percent to the new highs. It’s probably better for most of your house prices, by the way you can buy this index to exchange-traded funds including iShares that mirror the performance of this index, but of course don’t expect it always to do that, but if you think one hundred and fifty four percent in eight years is okay, look at this one. This is what in hindsight we all should have jumped onto,  the Nasdaq index that largely tracks US technology shares. In the depths of the global financial crisis same time late 2008 early 2009 it touched a low of below thirteen hundred, today it’s hit a fresh all-time high six thousand and twenty five the eighth year gained, three hundred and sixty three percent, certainly better than your house price.

Emmanuel Macron

Now all this is happening because of the likely election win of Emmanuel Macron, this is in from overnight and the feeling that maybe the worst is behind the European economies that the EU will not implode and there could be growth. That’s one thing, but markets are really responding in anticipation of Donald Trump and his much vaunted tax cut plan. It’s the real reason stock markets have jumped to all-time highs on this he cannot disappoint. Though Republicans control both the House of Representatives and the Senate, there’s no certainty that tax cuts will pass through unscathed.

Meantime here inflation numbers released today and are expected to be higher, if inflation rises it’s a sign the economy is starting to pick up, but with that will come the expectation that banks will keep raising interest rates for first home buyers, homeowners and business.

Markets

Let’s have a quick look at the markets this morning and what we can see is the Australian dollar this morning sitting at seventy three points three six, seventy five point three six US cents, if we move further forward we can see the Dow Jones index from overnight was actually up by more than two hundred points.

Source: Today Show Money Minute/Ross Greenwood

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