Breaking news- Donald Trump
The dollar and some stock indexes slipped on Monday, after US President Donald Trump
used his inaugural address on Friday to underscore his protectionist
agenda, unnerving some investors who had hoped for a more conciliatory
tone.
In Asia, the Nikkei stock index ended the day more than 1 per cent lower and shares across Europe largely kicked off the trading session weaker too. The FTSE 100 was down around 0.9% in early trading, according to Thomson Reuters.
In currency markets, the dollar, which had been sent on a wild-ride in the lead-up to the inauguration, fell against a slew of currencies, closing in on a seven-week low hit against Japan’s yen on Wednesday last week.
“Our take on Mr Donald Trump’s inauguration address on Friday is that it appeared combative, protectionist and divisive in many respects,” economists at UniCredit wrote in a research note on Monday. “Consequently, we think that the downward trend in the USD that has recently emerged is likely to extend further.”
In Friday’s address Mr Trump stressed his ambition to put "America first", and highlighted his two rules of “buy American and hire American.”
On Sunday, the new President said that he plans to renegotiate the North American Free Trade Agreement (NAFTA).
"The market is getting nervous about the possibility that the world's trade might shrink," Reuters quoted Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank in Tokyo, as saying.
In the aftermath of Mr Trump’s November election victory stock markets, especially in the US surged, spurred by the New York businessman’s campaign promises of tax and regulatory roll backs and higher infrastructure spending.
In Asia, the Nikkei stock index ended the day more than 1 per cent lower and shares across Europe largely kicked off the trading session weaker too. The FTSE 100 was down around 0.9% in early trading, according to Thomson Reuters.
In currency markets, the dollar, which had been sent on a wild-ride in the lead-up to the inauguration, fell against a slew of currencies, closing in on a seven-week low hit against Japan’s yen on Wednesday last week.
“Our take on Mr Donald Trump’s inauguration address on Friday is that it appeared combative, protectionist and divisive in many respects,” economists at UniCredit wrote in a research note on Monday. “Consequently, we think that the downward trend in the USD that has recently emerged is likely to extend further.”
In Friday’s address Mr Trump stressed his ambition to put "America first", and highlighted his two rules of “buy American and hire American.”
On Sunday, the new President said that he plans to renegotiate the North American Free Trade Agreement (NAFTA).
"The market is getting nervous about the possibility that the world's trade might shrink," Reuters quoted Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank in Tokyo, as saying.
In the aftermath of Mr Trump’s November election victory stock markets, especially in the US surged, spurred by the New York businessman’s campaign promises of tax and regulatory roll backs and higher infrastructure spending.
No comments:
Post a Comment