While you were sleeping: UPDATED Wall Street continues record run

Equities rose on both sides of the Atlantic, with Wall Street climbing to record highs amid continuing optimism that US President Donald Trump's tax plans will add to an upswing in corporate profits.

Stocks still rode high on President Trump's latest promise to soon announce plans "that will be phenomenal in terms of tax."

Investors are also awaiting Federal Reserve chairwoman Janet Yellen's semi-annual testimony to Congress on Tuesday and Wednesday to gauge the latest on the central bank's plans to hike interest rates three times this year.

"There is a sentiment of optimism around President Trump's policies and last comments regarding fiscal promises," Andrea Tueni, a trader at Saxo Bank, told Bloomberg.

"We are still following last week's good trend, waiting for more catalysts from tomorrow with Ms Yellen’s testimony and macro statistics."

A New York Fed report showed US consumer expectations for inflation last month rose to the highest level in almost two years.

At the close of trading in New York, the Dow Jones Industrial Average was up 142.41 points, or 0.7%, to 20,411.78. The Nasdaq Composite Index advanced 0.5% to 5763.96 and the Standard & Poor's 500 Index also gained 0.5% to 2328.25.

All three indexes also climbed to fresh closing records on Friday.

Fundamentals getting better
"What is underlying this whole Trump rhetoric is that fundamentals in the world, including the US, are getting better," Northwestern Mutual Wealth Management chief investment strategist Brent Schutte told Reuters.

Gains in Caterpillar and Goldman Sachs shares, up 2.4% and 1.6% respectively, led the Dow higher. Apple rose 1.2% to $US133.29, topping its all-time high of $US133.00 in February 2015. 

Among the latest earnings that bettered expectations was Canada's Restaurant Brands International, owner of Burger King and Tim Hortons. The shares climbed after it posted quarterly profit that exceeded expectations.

"Our continued focus on guest satisfaction and value creation for all of our stakeholders has resulted in accelerated restaurant development and continued system-wide sales growth at both of our iconic brands, Tim Hortons and Burger King," CEO Daniel Schwartz says.

The stock traded 2.6% higher at $C68.93 in Toronto after earlier rising as high as $C69.10.

In Europe, the Stoxx 600 Index ended the day with a 0.8% advance from the previous close. The UK's FTSE 100 Index added 0.3%, Germany's DAX Index increased 0.9%, while France's CAC 40 Index climbed 1.2%.

The European Commission upgraded its economic growth outlook in its Winter Economic Forecast, predicting euro-area gross domestic product will rise 1.6% this year and 1.8% in 2018, up from its previous forecasts for 1.5% and 1.7% respectively.

However, it also warned of "exceptional risks surrounding" its latest outlook.

"The particularly high uncertainty is due to the still to be clarified intentions of the new administration of the United States in key policy areas, as well as the numerous elections to be held in Europe this year and the upcoming "Article 50" negotiations with the UK," the commission says.

(BusinessDesk)