(MENAFN- Gulf Times) World stocks were mostly upbeat yesterday with Wall Street pushing for new records, Tokyo hitting a two-decade peak and Frankfurt leading Europe higher ahead of key central bank decisions on both sides of the Atlantic.
Well-perceived corporate earnings were behind much of equity markets' confidence, while Wall Street also welcomed stronger-than-expected jobs data and seemed hopeful that Donald Trump's ambitious tax plans will finally become reality.
'US stocks are in the green in midday trading, with tax reform optimism and upbeat earnings joining a better-than-expected jobs report and still-solid manufacturing activity to lift the markets, brokers Charles Schwab said summing up market sentiment.
In Europe, Frankfurt's DAX index was up a solid 1.8% at 13,465.51 by the close as German investors played catch-up after a bank holiday and a weaker euro gave a boost to exporters.
Paris followed suit with much more modest gains, while London ended almost unchanged, with the benchmark FTSE 100 failing to capitalise much on a soft pound.
Many investors felt jittery ahead of a key Bank of England decision today on interest rates, which are widely expected to be hiked to counter Brexit-fuelled inflation. If so, this would be the first British rate rise since 2007.
The London market was also hampered by weakness among clothing retailers after a trading update from Next which also weighed on rival Marks & Spencer.
Across the Atlantic, the Federal Reserve is expected to keep US monetary policy unchanged at the conclusion of a two-day meeting late yesterday.
But its announcement will be scrutinised for clues as to a December rate increase, a scenario made more likely by data yesterday showing strong US private-sector hiring.
Looming over the decision is President Donald Trump's announcement due today of his pick to replace Fed chair Janet Yellen.
Jerome Powell is tipped as the front-runner, with investors pricing in his potential appointment over the more hawkish John Taylor.
Meanwhile, optimism was fuelled by congressional Republicans prepared to unveil President Donald Trump's long-anticipated tax cut plan.
Traders are also keeping a close eye on key American payroll data out tomorrow.
The New York attack by a truck driver that killed eight people, and Trump's vow to ensure more robust 'extreme vetting of travellers to the US, did not appear to affect investor decisions.
Oil prices had a rollercoaster day, rising strongly after a big drop in US inventories before falling back as analysts recommended profit-taking in an overbought market.
'The market is breathing rarefied air, said Neil Mellor, at BNY Mellon.
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