* US dollar jumps, Treasury yields rise on Trump tax
* World stock indexes gain on rosy results
* Oil extends gains on gasoline drawdown
(Adds settled oil prices; updates throughout)
By Hilary Russ
NEW YORK, Feb 9 The U.S. dollar and bond yields
rose on Thursday after comments from President Donald Trump that
he would be releasing his "phenomenal" tax plan in the next few
Investors have been waiting for details on Trump's election
campaign pledge to stimulate economic growth with large-scale
fiscal stimulus through infrastructure spending and tax cuts.
In a meeting with airline executives at which Trump talked
about the need to modernize the U.S. air traffic control system,
the president also said his administration will be announcing
"something phenomenal in terms of tax" over "the next two or
The U.S. dollar rose more than 1 percent against the yen
to a six-day high, the euro fell to the day's low against
the dollar, and the greenback saw a one-week high against
the Swiss franc.
Benchmark 10-year note yields reached a high of
2.3948 percent after seeing a three-week low of 2.325 percent
"It's been a broad-based dollar rally, driven by the
headlines that Trump plans to announce something phenomenal on
taxes in the next few weeks, in his words," said Kathy Lien,
managing director of BK Asset Management.
"That was really the crux of the dollar rally shortly after
his election and I think investors are getting really excited
about that again."
The dollar had gained more than 5 percent against a
basket of major currencies in the six weeks after Trump's
election but has given back some of those gains since as Trump
has focused more on trade and immigration than fiscal stimulus.
Major world stock indexes also climbed on Thursday as
investors took inspiration from corporate earnings and put aside
for now the political risks that have dominated markets this
Investors had in recent weeks been pondering the potential
impact of the protectionist policies of President Trump and the
threat of similar policies resulting from upcoming European
elections in France and Germany.
Wall Street's three main indexes hit record highs on
Thursday, amid gains across most sectors, led by financial and
The S&P 500 financial index rose 1.37 percent as
bond yields rose and was on track to snap a three-day losing
streak after Trump's statements.
The Dow Jones Industrial Average rose 144.02 points,
or 0.72 percent, to 20,198.36, the S&P 500 gained 15.69
points, or 0.68 percent, to 2,310.36 and the Nasdaq Composite
added 38.32 points, or 0.67 percent, to 5,720.78.
U.S. crude oil futures rose 1.26 percent, or 33
cents, to settle at $53.00 per barrel, extending gains to the
second day, supported by an unexpected drawdown in U.S. gasoline
Benchmark Brent crude was up 54 cents a barrel, or
0.98 percent, at $55.66.
"I think this is another 'Trump On' trade day, where we're
finally seeing some of the proposed policies being put into
place," said Chris Gaffney, president of world markets at
The pan-European STOXX 600 index closed 0.78
percent higher. French lender Societe Generale
reported lower fourth-quarter net income that
nonetheless beat analysts' forecasts and its shares added 2.29
Concern over the impact of elections in France and Germany
this year saw investors sell bonds of lower-rated euro zone
countries earlier this week. However, yields started falling
late on Wednesday and fell further on Thursday.
French 10-year government bond yields fell
below 1.0 percent for the first time in two weeks.
The final round of France's presidential election in three
months is expected to include far-right, anti-euro candidate
Marine Le Pen.
Yields on German 10-year bonds, seen as among
the world's safest assets, edged down 0.6 bps to 0.30 percent.
Japanese shares fell 0.5 percent, a day before Prime
Minister Shinzo Abe meets Donald Trump.
(Additional reporting Yashaswini Swamynathan in Bengaluru;
Henning Gloystein in Singapore; Editing by Clive McKeef and Nick