Equities rally again: The Dow Jones just hit another all-time high - but the FTSE 100 has fallen back

Emma Haslett
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Donald Trump Holds Campaign Rally In Phoenix, Arizona
The Dow Jones has been rising since Donald Trump was elected President of the US (Source: Getty)

The Dow Jones industrial average leaped to 18,904 points in early trading in New York today, smashing its previous record of 18,857.

Meanwhile, across the pond, trading was also encouraging - although slightly less encouraging than it was earlier, after the FTSE 100 slid to 6,752 points, down from 6,811 earlier. It was still in the green, though, pushed up by Tesco, which rose more than four per cent, and Capita, which rose 4.5 per cent.

The pound, on the other hand, slid almost one per cent against the dollar, back below $1.25 to $1.2476.

Analysts noted that the markets are still keeping an eye out for any steer from US President-elect Donald Trump.

"Trump-watching is still the pastime of choice," said Jasper Lawler, market analyst at CMC Markets.

"US stocks look set for a higher open and another new record high for the Dow Jones Industrial Average, now on the march towards 19,000. Donald Trump’s staff appointments will signpost whether the notable sector rotation that began in the wake of the election result actually makes sense.

"The move into financials and basic materials is part of a reflation trade that started before the election, though it has clearly accelerated since. A return to New Deal-esque infrastructure spending is probably one of the areas Donald Trump will struggle the most to get through the fiscally-conservative Republican congress. That makes the rise in industrial and construction stocks the most vulnerable."

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