European stock market indices shrugged off the threat by President Donald Trump to institute new tariffs on foreign products and kept making new all-time highs. President Trump said that he was to start instituting tariffs on Canada and Mexico, however, Canada’s stock market index (TSX) also shrugged off the threat and made a 0.44% gain yesterday. The Mexican stock market kept its downward trend that started last year.
The Euro Area Stock Market Index (EU50) made a 0.17% gain yesterday reaching new all-time highs. DAX futures also made new all-time highs in the overnight session and the German stock market is heading to open today at record levels. Money flows into European stocks reached record levels last year with Europe stock ETFs bringing in up to $278 billion in flows, raising the total market cap of European stock ETFs by more than $2 trillion. Flows into European stocks in January this year are also very positive so far.
The S&P500 surged by 5.8% since Donald Trump was announced as the winner of the US presidential elections, with the NASDAQ making 8.6% and the Dow Jones Index making 5.3%. US stock market indexes are near their all-time highs which also surged on the back of positive and surprising inflation reports indicating inflation is slowing more than expected despite surging natural gas prices. Inflation in the European Union is also slowing down.
Although some traders fear the upside is momentarily limited, investors keep piling in with a risk-on sentiment.
Newsroom
Leave a Reply