Global markets happy as Dow Industrial Average hits new high
06 Mar 2013
The Dow Jones Industrial Average hit an all-time high on Tuesday, surpassing its own record of five years ago (See: Dow Jones Industrial Average), just before sub prime crisis shook global markets.
The Dow closed at 14,253.77, well above its all-time closing high of 14,164 set on 9 October 2007.
Investor sentiment was mainly bolstered by China's plans to increase spending, including nearly an 11-per cent hike in defence expenditure.
Most other global stocks jumped in tandem, tracking the strong gains in the US markets.
Analysts say the Dow may extend gains as a top-off is unlikely soon. In fact most believe that it indicates an uptrend in the US markets.
This is partly because the industrial average upsurge was accompanied by a similar jump in the Dow Jones Transportation Average, which also closed at a record high. According to the Dow Theory, both indices should move in tandem for clear signals about breakout or breakdown in markets.
