US Stocks Score New Records On Optimism Over Trade

Wall Street stocks shot to fresh records Thursday, shrugging off a historic US impeachment vote while the British pound continued to retreat.

All three major US indices advanced to new records, basking in an improved outlook on trade, with the mellowing of US-China tensions and a new continental trade agreement with the US, Canada and Mexico advancing in Congress.

Analysts said Thursday's records also reflect broad expectations that the US Senate will vote against removing US President Donald Trump from office after Trump became just the third US president in history impeached.

"The market is going to ignore impeachment in large part, it will pay attention to earnings, interest rates and the Fed," said Art Hogan, chief market strategist at National Securities. "That's been true for the last two impeachments."

Michael Hewson at CMC said financial markets had given the news "a collective 'meh', while IG analyst Chris Beauchamp quipped that "the president, it seems, could offer to sell Alaska back to Russia and the Republican party might still not vote to impeach him."

The Bank of England, meanwhile, kept its key lending rate at 0.75 percent.

It left the door open to a possible easing next year depending how Brexit goes, "though its commentary and voting pattern could easily have been more dovish than they were," analysts at Nomura said.

The Swedish central bank on Thursday became the first to bring its leading rates back from negative levels.

In European equity markets, London edged upwards as British Prime Minister Boris Johnson laid out his plans for government after last week's election triumph, with a focus on delivering Brexit and supporting the health service.

Frankfurt ended a touch lower, while Paris managed to eke out a tiny closing gain.

The British pound remained depressed, having given up its post-election gains after Johnson said he would pass a law preventing an extension to the next phase of Brexit, reviving the chances of a no-deal divorce.

Among individual companies, Micron Technology gained 2.8 percent after the chip company's earnings topped analyst expectations and it described the just-ended quarter as a "bottom" for its financial performance.

Meanwhile Dow-member Boeing gained 0.9 percent despite having its debt rating downgraded by both S&P and Moody's after it halted production on the 737 MAX, which remains grounded following two deadly accidents.

New York - Dow: UP 0.5 percent at 28,376.96 (close)