Historic day for the markets
There’s been a boost to the Australian share-market on the back of an historic day in the United States
Ross Greenwood: Well, this is different.
This is Trump power.
Alan Valdes: He now owns this economy, he owns the presidency.
That speech put them over the top.
Ross: Trump’s message about tax to the US Congress saw the US stock market rise to another all-time high.
Donald Trump: My economic team is developing historic tax reform that will reduce the tax rate, on our companies, so they can compete and thrive anywhere and with anyone.
Peter Cardillo: His tone was quite different than were used to.
And so I think that, that, basically caught the attention of a lot of investors
Ross: And boy, did they buy it.
The Dow Jones index of US shares shot through 21,000 – just three weeks after it hit 20,000 for the very first time.
Equal to the fastest thousand point gain in history.
Alan: It’s an incredible run, totally incredible.
Ross: Since Trump was elected, US markets have risen 15 per cent, adding more than $3,000 billion to their value.
Australia’s market, though more subdued, followed that trend.
The sting in the tail though is that we’re likely to follow the US when interest rates rise again.
And after this latest stock market move, that’s now expected sooner rather than later.
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