Trump's change of tone towards Japan boosts global stock markets

Along with the European Commission raising its growth forecasts for the eurozone, U.S. President Donald Trump's somewhat soothing tone recently towards Japan and China, has managed to send global stock markets to new heights.

In the United States, the Dow Jones industrial average, the S&P 500 and the Nasdaq composite, which had already been boosted in recent days by Trump's promise of a "phenomenal" tax reform announcement in the next few weeks, hit record highs following the President's meeting with Japanese prime minister Shinzo Abe, over the weekend, reports the Guardian.

During the visit, Trump affirmed Washington's "one China" policy, following which Abe and Trump also agreed to discuss a bilateral trade deal.

Meanwhile the European Commission's raised forecasts for Europe's economies helped to push German and French stock markets sharply higher despite the continuing concerns about forthcoming elections in both countries, as well as the renewed uncertainty over the Greek bailout programme.