Tue Jan 3, 2017 1:50PM
Stock markets in Asia and Europe rise in 2017
Stock markets in Asia and Europe rise in 2017

Most of the European and Asian stock markets have risen on their first trading day of 2017.

London's FTSE 100 reached a new high at 7,205.21 points in morning deals on Tuesday, extending a record run seen in the final week of last year. Meanwhile, the Paris CAC 40 struck a 13-month high above 4,900 points. 

Since Britons’ vote in favor of leaving the EU, London's FTSE 100 blue-chip index has soared thanks largely to a weaker pound even as the economy shrugs off the impact of the country's impending divorce from the EU.

Though the country’s manufacturing is improving, many economic analysts are of the opinion that the British economy will falter in 2017 as the uncertainty surrounding Brexit increases. Earlier, Prime Minister Theresa May indicated that she will trigger the two-year process by the end of March. That move is expected to undermine British economic activity as businesses and individuals delay or scrap investment and spending amid the uncertainty.

Most Asian markets were also higher on their first trading day of the year.

Chinese stocks finished solidly higher. A research firm showed recently that the country’s manufacturing activity expanded in December at its quickest pace in nearly four years. This is viewed widely as a sign of improving health for China as the world's second-largest economy.

Markets in Japan were closed for the final day of an extended New Year holiday.

Also on Tuesday, oil prices struck fresh 18-month highs as an agreement by major producers to cut output took effect. OPEC members agreed last year to slash output to shore up prices weighed down by an oversupply over the past two years.