NEW YORK, Dec 22 — Leading global stock markets climbed yesterday, fuelled by a boost in bank and energy shares coupled with overall investor optimism after the recent passage of a US$1.5 trillion (RM6.1 trillion) tax cut plan in Washington.

Investors were hopeful the Republican-backed tax legislation, which slashes corporate income tax rates to 21 per cent in the most dramatic overhaul of its kind in more than three decades, prompts companies to deploy additional capital on dividends, new projects and wages.

"There’s still the after-effects of tax reform being passed,” said Michael Antonelli, managing director at Robert W. Baird in Milwaukee. "I get the sense that the market is very optimistic about next year.”

Energy and financial stocks led gains among the 11 major S&P sectors. Energy, in particular, had underperformed in 2017.

The Dow Jones Industrial Average rose 55.64 points, or 0.23 per cent, to close at 24,782.29, the S&P 500 gained 5.32 points, or 0.20 per cent, to 2,684.57 and the Nasdaq Composite added 4.40 points, or 0.06 per cent, to 6,965.36.

MSCI’s gauge of stocks across the globe gained 0.24 per cent. The pan-European FTSEurofirst 300 index rose 0.66 per cent.

Solid economic growth data from the US Commerce Department also helped boost stocks. The US economy grew at its fastest rate in more than two years in the third quarter and was poised for a slight boost next year from the tax bill.

US Treasury yields held at lower levels, with 10-year yields scaling back from a nine-month peak, providing a respite from a sharp three-day bond market selloff tied to the tax plan, as investors began bargain hunting.

In Europe, the premium investors demand for holding Spanish bonds over top-rated German peers fell to its lowest in almost three months as Catalonia held an independence election.

Euro zone bond yields held near multi-week highs mostly on the US tax code overhaul vote and passage.

The US dollar inched lower in light trading, with investors pausing ahead of the holidays and attempting to digest the implications of US tax reform.

The dollar index, tracking the greenback against a basket of major currencies, fell 0.05 per cent, with the euro up 0.04 per cent to US$1.1874. The greenback was on track to post its worst annual performance in 14 years.

Spot gold, which benefits on a weakened dollar, added 0.1 per cent to US$1,266.88 an ounce. US gold futures gained 0.06 per cent to US$1,270.40 an ounce.

Brent oil prices rose enough to close at the highest since the summer of 2015 as the Organisation of the Petroleum Exporting Countries started work on plans for an exit strategy from its deal to cut crude supplies.

Brent futures gained 34 cents, or 0.5 per cent, to settle at US$64.90 a barrel, while US West Texas Intermediate crude rose 27 cents, or 0.5 per cent, to settle at US$58.36. It was the highest close for Brent since June 2015 and for WTI since November 24. — Reuters