World stocks are lifted by a re-emergence of so-called ''Trump trades'' as investors bet that the U.S. president's tax reform plans will boost economic growth and corporate profits. But as David Pollard reports, not all analysts are in risk on mood.
Joy for its leaders perhaps - but Sunday's North Korean missile launch is the kind of event that usually puts an unwelcome rocket into market sentiment. On this occasion, not - sentiment apparently unscathed. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "If you look at what companies are turning in for the last quarter, certainly there seems to be momentum. That matched with the economic forecasts, the top-down forecasts that we're getting through from the likes of the IMF are tending to support a mild acceleration on a global basis." Not only earnings seasons beats and a better global outlook driving shares higher - but the prospect of a massive bazooka elsewhere. Donald Trump vowing last week to announce the biggest tax reform since the Reagan era in the next few weeks. That already partially priced in to equities. And given its own label: 'the Trump trade'. Record highs for US stocks last week expected to be followed by more. Asia and Europe following with some of their best closes since 2015. Dispelling for a moment what some see as the larger issues European voters faces in a key election year. (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "People without a job tend to give their vote to euro critical parties. The euro zone and Europe must offer prosperity and prospects for employees. If that doesn't happen, it's going to be very negative." And the global growth story still searching for the happy ending it wants - but might not get. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "We are not likely to see anything like the sort of growth levels that we saw pre-crisis out of the global economy anytime soon." And there is the unknown of Trump himself. The danger that protectionist rhetoric will translate into global trade damage. That fear, say analysts, no laughing matter whatsoever.