Dow Jones Breaks Through 25,000 Barrier While TOPIX Hits 26-year High

In early morning trading in the US, the Dow was at 25,056, slightly down from a high of 25,073, climbing more than 20% from the same date last year when it sat at 19,942. Only five weeks ago it closed above 24,000 points for the first time.

The rise comes after the S&P 500 crossed the 2,700 points mark for the first time yesterday, with US markets buoyed by news President Trump finally managed to pass his sweeping tax cuts at the end of last year.

Global stockmarkets have had a strong start to 2018, with Japan's TOPIX index hitting a 26-year high this morning on the back of strong manufacturing data.

In the first day of 2018 trading, the Nikkei 225 was up 3.3% to 23,506 points, while the TOPIX rose 2.6% to 1,863 points; its highest level since 1991. 

Investors responded positively to manufacturing data released today showing the Nikkei-Markit Japan PMI grew at its fastest rate since 2014 in December.

Over one year to 3 January, the Nikkei 225 is up 22% in sterling terms while the TOPIX is up 20%, boosted by a rally following the re-election of Prime Minister Shinzo Abe last October. 

In addition, commodities are enjoying their longest winning streak on record with the Bloomberg Commodities index, which tracks 22 raw materials, posting 14 consecutive days of positive gains. It closed at the highest level since February 2017 last night. 

Oil prices hit two-year high following Saudi corruption crackdown

It is expected to rise further on the back of a higher oil price, weaker dollar and a boom in global manufacturing output. 

The price of brent crude oil has now risen to $68.18 a barrel, a two and a half year high. Oil prices have been steadily rising over the past six months from a low of $44.82 last June. 

However, the FTSE 100 only gained 0.33% today to 7,696, with the biggest risers being NMC Health rising 4.3% and security firm G4S up 2%.