Trump’s tax promises boost markets
Equity markets, the US Dollar and commodities all continue to trended higher buoyed by revived optimism around President Trumps policies, coupled with strong US earnings reports.
The continued rally was largely triggered by President Trump's promise of an impending "phenomenal" announcement on taxes.
In general, concerns about the President's policies are easing slightly as it becomes evident he won’t be able to simply ride roughshod over the US judicial system. He is also showing some sense like telling the Chinese President that he’ll respect the "One China" policy.
- sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 15 Feb 17
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Equity markets, the US Dollar and commodities all continue to trended higher buoyed by revived optimism around President Trumps policies, coupled with strong US earnings reports.
The continued rally was largely triggered by President Trump's promise of an impending "phenomenal" announcement on taxes.
In general, concerns about the President's policies are easing slightly as it becomes evident he won’t be able to simply ride roughshod over the US judicial system. He is also showing some sense like telling the Chinese President that he’ll respect the "One China" policy.Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
The continued rally was largely triggered by President Trump's promise of an impending "phenomenal" announcement on taxes.
In general, concerns about the President's policies are easing slightly as it becomes evident he won’t be able to simply ride roughshod over the US judicial system. He is also showing some sense like telling the Chinese President that he’ll respect the "One China" policy.
US earnings growth for the fourth quarter appears to be strong, with an expected increase of 8.5%, led by finance and technology stocks. This will be the strongest earnings growth since the third quarter of 2014.
Concerns about Europe last week – including the French elections – failed to have a negative impact on equities. This is set against a backdrop in which growth in the euro-zone economy outpaced the US last year and unemployment continues to fall.
European Government bonds, however, didn’t fare so well. The contrast between equity and bond markets throws up a dilemma for investors in Europe. Do they focus on improving economic signals? Or should they place more emphasis on the risks associated with upcoming elections in France, the Netherlands, Germany and possibly Italy?
An interesting development is the market’s realisation that issues in France, Spain and other peripheral euro-zone countries are actually good for the euro-zone. The weaker Euro makes the whole zone more competitive, especially for the stronger members likes Germany. A breaking up of the euro-zone would not be positive for Germany because the Euro would then become the currency of a smaller, but stronger, set of countries reducing their competitiveness.
Finally, a word on oil which has rallied on the back of Opec countries drastically curbing their output in the first month of their new production agreement. This is the clearest sign to date that the world's biggest oil producers are committed to living up to the November pact to cut global supplies.