The greenback continues to slip this 2017 after Donald Trump’s press conference; it made investors retreat due to the inadequate clarity on the fiscal policies’ future. While the dollar continues to slip, Asian currencies surges, gold and oil gained footings and sees positive inclinations last Wednesday.
The dollar is current trailing behind a basketful of major currencies and the Treasury yield is close to touching its lowest since November. Trump’s much-awaited press conference drove investors in the tail end because of the scant details surrounding the clarity on the fiscal policies. S&P 500 Index futures are dropping despite the tremendous 2016, and year in total growth last year.
According to reports, investors are eyeing on few specifics on the timing and scope regarding the policies from the infrastructure spending to trade pacts. This decline is utmost unprecedented, ever since Donald Trump won the election, the dollar and global equities saw a bullish run while bonds remains a good sell despite growth expectations from his future administration’s actions. While the Health-care stocks are currently shaking because of Trump’s decision to force the pharmaceutical industry to bid for government business in the world’s largest drug market.
Kathy Lien, managing director at BK Asset Management in New York said, “The market was disappointed by Trump’s lack of specificity and details on his fiscal spending plans,” while analysts from Westpac noted that, “President-elect Trump’s first news conference since late July has left a veritable laundry list of questions unanswered for markets,” they also added that “The news conference was a far cry from the market-friendly, pro-growth “presidential” comments that Trump delivered his acceptance speech on 9 Nov,”
Asian Currencies Up, Stocks Slides
On the other hand, the yen is having a positive 2017 and selloffs in drug makers are sending Japanese equities down. While the Nikkie sees the first slip in 2017 with 0.9 percent backed up by stronger yen on the weaker dollar. The dollar slides with a total of 0.3 percent; Korean won jumps a total of 1.1 percent and is headed to its highest closing since December 15, Aussies dollar added another 0.3 percent increase after rising to 0.9 percent after the previous 1 percent increase last Wednesday.
S&P 500 Index fell 0.2 percent against MSCI Asia Pacific Index who added 0.7 percent with 589 shares declining and an estimated 359 advancing. Taiwan’s Taiex index saw and increase 0.7 percent, its highest ever since June 2015’s closing. India’s S&P BSE index also increased a total of 0.6 percent. Other Asian currencies such as Japan’s Topix lost 0.1 percent, Hong Kong’s Hang Seng Index also drops 0.7 percent, while the New Zealand’s S&P/NZX 50 also falls, its first time after four days of trading.
Tired of being out-dated and left behind of the latest financial and market news? Follow us at Options12 for the round-the-clock updates of news about online trading, forex, commodity, economies, and automobile. Don’t get left behind, subscribed now for you daily news updates and be informed!