French election result revs up global stocks; Nasdaq touches 6,000
Nasdaq surged above 6,000 for the first time on Tuesday. (Representative image) (Image courtesy: Wikimedia commons) Photograph: (Others)
Stock markets mostly rose Tuesday following the previous session's record runs triggered by the first-round result of France's presidential election.
Gains were strongest in the US, where the Nasdaq surged above 6,000 for the first time and the blue-chip Dow index jumped more than one per cent following several strong earnings reports from big companies.
The increases were more modest among European equity indices, while the euro reached its highest level so far of 2017 against the dollar.
Global shares had soared Monday after centrist Emmanuel Macron topped the initial vote and looked well on course to beat far-right candidate Marine Le Pen in the May 7 run-off.
"Markets have continued their push higher from yesterday, although at a much more relaxed pace," said Chris Beauchamp, chief market analyst at IG trading group.
"The immediate impact of Macron's first-round success is wearing off, but the relief is still palpable among investors."
The outlook also improved for the euro currency, which no longer looks vulnerable to a so-called Frexit threatened by Le Pen.
"The risk of both the euro zone and the broader European Union unraveling dissipated in a meaningful way with centrist Emmanuel Macron finishing first in last week's preliminary election and projected to take the next and final round of voting on May 7," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
In the US, gains were propelled in part by strong earnings with three Dow members posting strong advances after reporting solid earnings. Industrial giant Caterpillar surged 7.9 per cent, DuPont 3.6 per cent and McDonald's 5.6 perc ent.
Analysts also have been heartened by talk in recent days from the White House touting news of a long-awaited tax cut plan, with President Donald Trump expected to release details on Wednesday.
Key figures at 2100 GMT
New York - Dow: UP 1.1 per cent at 20,996.12 (close)
New York - S&P 500: UP 0.6 per cent at 2,388.61 (close)
New York - Nasdaq: UP 0.7 per cent at 6,025.49 (close)
London - FTSE 100: UP 0.2 per cent at 7,275.64 points (close)
Frankfurt - DAX 30: UP 0.1 per cent at 12,467.04 (close)
Paris - CAC 40: UP 0.2 per cent at 5,277.88 (close)
EURO STOXX 50: UP 0.2 per cent at 3,583.16
Tokyo - Nikkei 225: UP 1.1 per cent at 19,079.33 (close)
Hong Kong - Hang Seng: UP 1.3 per cent at 24,455.94 (close)
Shanghai - Composite: UP 0.2 per cent at 3,134.57 (close)
Euro/dollar: UP at $1.0934 from $1.0867 at 2100 GMT
Pound/dollar: UP at $1.2835 from $1.2793
Dollar/yen: UP at 111.12 yen from 109.78 yen
Oil - Brent North Sea: UP 50 cents at $52.10 per barrel
Oil - West Texas Intermediate: UP 33 cents at $49.56 per barrel