Analysts expect bull run to continue this week

US stocks rose to new records last week and most analysts expect the run to continue if economic data this week is strong - but not too strong.

The Federal Reserve's minutes were a case of "steady as she goes", indicating that a rate hike in June is likely but that a sharp increase in Treasury rates is far less likely. That drove the US dollar to its lows of the year against some currencies, a positive if you are a large US corporation. This week, the US dollar could well rebound, leaving stock bulls in something of a quandary, if jobs data is strong enough to warrant a more aggressive position from the central bank.

There's something of a debate as to whether the "reflation trade" - the purchase of economically sensitive sectors as a play on President Donald Trump's pro-growth policies and perceived economic strength - is working or not, now that the Trump agenda has stalled. Last week, the industrial sector received a shot in the arm from a multibillion-dollar arms deal brokered by Mr Trump with Saudi Arabia. Still, as has been the case for weeks, more counter-cyclical sectors such as utilities, telecommunications and healthcare have been among the leaders, just as they were in the latter, slow-growth days of Barack Obama's presidency. Can stocks continue to gain if Mr Trump's ability to pass legislation is limited by scandal?