Stocks rise, Treasuries under pressure as Trump impact weighed

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TOKYO/LONDON, Nov 7 - World stocks gained on Thursday, a day after U.S. shares hit record highs, and U.S. Treasuries remained under pressure as investors processed a second Donald Trump presidency and awaited a Federal Reserve policy decision.

Stocks are"rewarding the presumed likelihood of corporate tax cuts and perceiving a general penchant toward deregulation across industries as positive for earnings," said Naomi Fink, chief global strategist at Nikko Asset Management. The benchmark 10-year yield was last at 4.44%, up 2 basis points on the day, after a 14 basis point rise on Wednesday, and the 30-year yield was last at 4.62%, a touch higher after the previous day's 15 bp jump.

Deutsche Bank analysts said, while it was too early to say, the developments could be positive for the euro due to the potential confidence boost from a more stable German government and the direct economic effects of a potentially more pro-active fiscal stance.The day's main scheduled macro economic event is the Federal Reserve meeting later in the day. Markets were still confident of a 25 basis-point cut , but slightly reduced bets on further easing in December.

Sterling extended its gains slightly after the decision, and was last up 0.5% to $1.2941, following a 1.24% slide on Wednesday. Gold edged up 0.4%, following Wednesday's more than 3% tumble, at $2,669 an ounce. However, that was still not far from its recent record high of $2,790.15.

 

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