For stock markets, the short-term and long-term outcomes of the “Trump trade” won’t necessarily be the same.
So far, President-elect Donald Trump’s victory Tuesday has been positively received by investors, as was the case in 2016. The S&P 500 rose 2.5% to a record close Wednesday, buoyed by Trump’s stated intentions to, among other tax cuts, take the corporate-tax rate from 21% to 15% for companies that manufacture in the U.S.
Most US stocks fell on Thursday, with small caps leading declines, as trade tensions continued to weigh on financial markets. The dollar jumped after the European Central Bank sounded a cautious note on growth.
The equities rally followed a US-China trade deal at the G20 summit in Argentina calling for a 90-day trade tariff truce. Oil prices jumped nearly 4%.
Reuters-polled economists are predicting the cost of living to rise by 0.4 per cent rise in the September quarter — which brings annual inflation to 1.9 per cent.
Neal Bhai Reports (NBR) By CFA’s and MFA’s Technical Team
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Gold Silver Reports (GSR) – U.S. Stocks Decline on Tech Woes, Treasuries Slide – The S&P 500 Index dropped the most in nearly two weeks as tech shares slumped after Taiwan Semiconductor’s disappointing forecast roiled chip-maker stocks. China’s request for concessions from Qualcomm Inc. to acquire NXP Semiconductors NV ratcheted up tensions over trade. Earnings misses from Procter & Gamble Co. and Philip Morris International Inc. weighed on consumer staples.
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