Wall street drives global equities to record high, prompted by better than expected growth figures and expectations of financial deregulation in the US. Monetary policy could still deliver risk, however.
Filmed by Rod Fitzgerald. Produced by Filip Fortuna and Alessia Giustiniano.
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Welcome to the FT "Market Minute." Here's what we're watching in London on Wednesday morning. Well, one measure of global stocks, the FTSE All-World Index, is back at record highs, despite many investors taking Fed chair Janet Yellen's latest comments as more hawkish than expected. Now Wall Street makes up more than 50% of the All-World, so it's [? trundle ?] to record levels is a big driver of the rally. But European and Asian markets with multi-month peaks, too, and even emerging markets have had a good run of late.
Now of course, equity bulls have been able to shrug off the prospect of high US borrowing costs because they are seen as coming in response to quicker growth. That's helped the All-World mining and materials sectors, which have risen by around 20% since the US election in November.
Another cause of the bull run, our hopes for less US regulation, especially in the financial sector. And banks should also benefit from those rising rates. No surprise then that the All-World Banking Index is up 16% since Mr. Trump's victory. Military policy could still deliver a risk, however. Or if the Fed is considered behind the curve and struggling to catch up, so watch out for the US inflation and retail sales data due on Wednesday.