Shares were higher Tuesday in Europe and Asia as the rally driven by the outcome of France’s vote persisted. Hopes for U.S. tax reform and a compromise on the U.S. budget deadline also lifted sentiment.
KEEPING SCORE: France’s CAC 40 edged 0.1 percent higher to 5,275.32, while the FTSE 100 of Britain jumped 2.1 percent to 7,264.68. Germany’s DAX was steady at 12,456.89. U.S. shares looked set for gains with Dow futures up 0.2 percent and S&P futures up 0.1 percent.
FRENCH FACTOR: Investors were encouraged that Emmanuel Macron, a candidate who investors see as pro-business, got the most votes in the first round of France’s presidential election. That raised expectations that the European Union may hold together, lifting shares in most world markets.
TAXES AND SPENDING: U.S. President Donald Trump promised to release Wednesday the outlines of a tax plan that a senior administration official confirmed would pledge to slash the corporate tax rate to 15 percent from 35 percent. Meanwhile, lawmakers were making progress toward a budget deal to prevent a partial federal shutdown this weekend. That efforts was helped by Trump backing away from demands that money be included to build his wall on the border with Mexico.
ANALYST VIEWPOINT: “Global equities rejoiced over the French election results overnight,” Stephen Innes of OANDA said in a commentary. But he added that “investor focus remains on international tensions with North Korea; the tax reform plan slated for this Wednesday, and a possible government shutdown entering weeks’ end.”
ASIA’S DAY: Japan’s Nikkei 225 index climbed 1.1 percent to 19,079.33 and the Hang Seng in Hong Kong jumped 1.3 percent to 24,455.94. South Korea’s Kospi added 1.1 percent to 2,196.85 and the Shanghai Composite index rose 0.2 percent at 3,134.57. Shares were higher in Taiwan and mixed in Southeast Asia. The Australian and New Zealand markets were closed for Anzac Day.
ENERGY: Benchmark U.S. crude oil gained 16 cents to $49.39 a barrel in electronic trading on the New York Mercantile Exchange. On Monday the contract fell 39 cents to settle at $49.23 per barrel. Brent crude, which is used to price international oils, added 22 cents to $51.82 a barrel. It fell 36 cents to $51.60 per barrel in London.
CURRENCIES: The euro gained to $1.0893 from $1.0868. The dollar rose to 110.47 yen from 109.76 yen and the British pound climbed to $1.2815 from $1.2795.