Trump’s trillion dollar share rally

Donald Trump sure knows how to send share prices rocketing right around the world — in his latest effort, he’s almost single-handedly added well over a trillion dollars to global share values in a single trading session.

Yesterday, two of the three major Asian markets — Tokyo and Shanghai — both leapt more than 2 per cent. The third, Hong Kong, would have followed but it was closed. Our own market was up, but by a more sedate 0.4 per cent.

As this was written early yesterday evening Wall St was headed for an all-time record high when it opened for the week near-midnight Aussie time. And that was on both the iconic Dow Jones index and the broader S&P 500.

US President Donald Trump meets North Korean leader Kim Jong-un.

And all because President Trump went to Osaka and agreed a truce with China’s president Xi Jinping in their trade war — and then took a detour to the Korean DMZ to, quite literally, ‘step over the line’ with his ‘new best friend’, North Korea’s Kim Jong-un.

It was the — to be frank, somewhat less than ‘peace in our time’ — non-deal with China that sent markets rocketing, rather than the ‘best-buddies catch-up’.

And what was absolutely critical to getting that reaction was the backdrop of near-zero policy short rates and long rates in global capital markets — and even more importantly, the near-guarantee that both sets will stay near zero into the foreseeable future.

That is something President Trump has also had a significant hand in delivering.

Go back seven months to the start of December and Fed head Jerome Powell was ‘promising’ to raise the US policy interest rate at least twice this year.

That ‘promise’ sent Wall St over the cliff — it

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