The U.S. dollar sustained losses as well as most stock indices, while government bonds increased following President-elect Donald Trump’s press conference on Wednesday.
His comments pushed investors into a somewhat risk-averse mode, however radical sentiments began to wear off as the conference was coming to an end. Stock markets continued to focus on the upcoming President and since the election result the dollar and U.S. equity indices soared while T-bills fell. However, the publishing of the unconfirmed intelligence report did not work in favour of Mr. Trump and so market bulls who were anticipating additional data for stocks to continue soaring have shifted their focus to the press conference.
The dollar’s losses implied that commodities denominated in US dollars moved higher, while crude oil also surged after news emerged that the world’s largest crude oil producer – Saudi Arabia – trimmed its production levels to a two-year low. The price of gold was trading just shy of the $1,200 per ounce mark. German government bond yields moved upwards following the release of data by the German Federal Statistical Office Deutschland that the nation’s economy grew by 1.9%, the fastest rate in five years.
In reality the chances may be that a clearer picture of Donald Trump’s policies will be in place after the inauguration on 20 January and it might even take several weeks for the decisions to be finalised as they have to be decided by the Congress. The markets’ correction following the press conference may be seen as the beginning of a rebalancing of the overreaction observed initially. But Mr. Trump showed further signs of heavy regulatory reforms as he criticised the pharmaceutical sector and repeated his eagerness to proceed with taxes on imports. Tensions with Mexico remained at high levels after he reiterated his target to share the costs of building a wall with the neighbouring nation.
The U.S. dollar decreased against the Japanese yen on Wednesday by 0.7% to ¥115.088 and against the euro by 0.4% to €0.945. The U.S. Dollar Index (USDX, DXY), a measure of the value of the U.S. dollar relative to a basket of foreign currencies, decreased by nearly 0.4% and ended noticeably lower than the previous week’s 14-year high. The Mexican peso ended the trading week at 21.46664 per U.S. dollar, after Wednesday’s record low of 22.03380 per U.S. dollar when Mr. Trump alarmed manufactures with production units in Mexico to significant tax levies.
The S&P 500 index, which one month ago reached a record high of 2,277.76, ended the trading week with negligible losses. The Dow Jones Industrial Average on a weekly basis decreased by 0.4% to 19,832. Crude oil on Wednesday increased by 2.6% to $52.25 per barrel, while gold moved through the trading week with mild daily increases but with an overall rise of 2% to $1,197.31 per ounce.
The U.S. dollar sustained losses as well as most stock indices, while government bonds increased following President-elect Donald Trump’s press conference on Wednesday.
His comments pushed investors into a somewhat risk-averse mode, however radical sentiments began to wear off as the conference was coming to an end. Stock markets continued to focus on the upcoming President and since the election result the dollar and U.S. equity indices soared while T-bills fell. However, the publishing of the unconfirmed intelligence report did not work in favour of Mr. Trump and so market bulls who were anticipating additional data for stocks to continue soaring have shifted their focus to the press conference.
The dollar’s losses implied that commodities denominated in US dollars moved higher, while crude oil also surged after news emerged that the world’s largest crude oil producer – Saudi Arabia – trimmed its production levels to a two-year low. The price of gold was trading just shy of the $1,200 per ounce mark. German government bond yields moved upwards following the release of data by the German Federal Statistical Office Deutschland that the nation’s economy grew by 1.9%, the fastest rate in five years.
In reality the chances may be that a clearer picture of Donald Trump’s policies will be in place after the inauguration on 20 January and it might even take several weeks for the decisions to be finalised as they have to be decided by the Congress. The markets’ correction following the press conference may be seen as the beginning of a rebalancing of the overreaction observed initially. But Mr. Trump showed further signs of heavy regulatory reforms as he criticised the pharmaceutical sector and repeated his eagerness to proceed with taxes on imports. Tensions with Mexico remained at high levels after he reiterated his target to share the costs of building a wall with the neighbouring nation.
The U.S. dollar decreased against the Japanese yen on Wednesday by 0.7% to ¥115.088 and against the euro by 0.4% to €0.945. The U.S. Dollar Index (USDX, DXY), a measure of the value of the U.S. dollar relative to a basket of foreign currencies, decreased by nearly 0.4% and ended noticeably lower than the previous week’s 14-year high. The Mexican peso ended the trading week at 21.46664 per U.S. dollar, after Wednesday’s record low of 22.03380 per U.S. dollar when Mr. Trump alarmed manufactures with production units in Mexico to significant tax levies.
The S&P 500 index, which one month ago reached a record high of 2,277.76, ended the trading week with negligible losses. The Dow Jones Industrial Average on a weekly basis decreased by 0.4% to 19,832. Crude oil on Wednesday increased by 2.6% to $52.25 per barrel, while gold moved through the trading week with mild daily increases but with an overall rise of 2% to $1,197.31 per ounce.
http://www.cnbc.com/japanese-yen/
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=DJIA
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