World stocks hit a 19-month high on Wednesday, lifted by strong Japanese trade data, stellar European company earnings and expectations that US President Donald Trump will press ahead with a large fiscal spending package.
\nThe refocus on Trump\u2019s policies aimed at reflating the US economy did not extend as much to bond and currency markets, where US yields only inched up and the dollar fell across the board, particularly against a resurgent British pound.
\nMSCI\u2019s global share index rose 0.3 percent to 434 points , its highest since June 2015, after two of Wall Street\u2019s main indices reached fresh peaks overnight.
\nUS futures pointed to a higher open on Wall Street. On Tuesday the S&P 500 and Nasdaq both rose to fresh record highs and the Dow Jones Industrials came within 51 points of the elusive 20,000 mark.
\n\u201cIt is time dust off those Dow 20k hats again, because the Trump rally is well and truly back on,\u201d said Neil Wilson, senior market analyst at ETX Capital.
\nThe post-election rally has tempered in recent days as investors focused on the White House\u2019s trade protection pronouncements.
\nEurope\u2019s index of 300 leading shares rose 1 percent and Germany\u2019s DAX rose 1.4 percent to a fresh 18-month high, while the UK FTSE 100\u2019s rise was limited to 0.3 percent by the strong pound.
\nSpanish bank Santander was among the big gainers in Europe, its 4 percent rise in 2016 net profit giving its share price a similar boost and leading the continent-wide rally in bank stocks.
\nJapan\u2019s Nikkei advanced 1.4 percent, buoyed by data showing the country\u2019s exports rose for the first time in 15 months in December, a positive sign for the economy even as talk of US protectionism looms over the outlook.
\nTrump signed two executive orders on Tuesday to move forward with construction of the Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favor of expanding energy infrastructure.
\nHe also met chief executives of the Big Three US automakers to push for more cars to be built in the US.
\n\u201cWe are clearly seeing a pro-business administration that is minded to action,\u201d ETX Capital\u2019s Wilson said.
\nGlobal bond yields rose as Trump shifted his focus back to growth initiatives including promising corporate tax breaks to fuel US investment, after focusing on protectionism in his first few days in office.
\nThe 10-year yield inched up to 2.48 percent, recovering from its dip below 2.40 percent earlier in the week, while the two-year yield held firm at 1.23 percent. It was as low as 1.14 percent on Monday.
\nEuropean yields rose further. Germany\u2019s 10-year Bund yield hit a six-week high of 0.38 percent and France\u2019s benchmark 10-year yield hit a one-year high of 0.95 percent , with bond prices weighed down by the rally in stocks and new debt supply.
\nIn currencies, the dollar failed to carry on its upward momentum from Tuesday.<\/p>\n