Global markets were generally higher on Friday as US stocks jumped to another record and crude oil rallied and investors reignited reflation trades while awaiting details of the Trump administration’s plan to cut taxes. Former Goldman Sachs president Gary Cohn is reportedly leading the effort to craft the tax overhaul, further lifting optimism that the plan will be business friendly.
Over the weekend, Trump did soften his line on Japan and China and met with Japanese Prime Minister Shinzo Abe, with the two affirming the nations’ close relationship. Trump also committed to bolstering trade with Japan and Pacific allies (including Australia & NZ), stepping back from his recent anti-trade rhetoric.
Once again investors are weighing pro-growth policy reforms such as tax cuts and infrastructure spend, against restrictions on trade & immigration which could offset their effect.
As we have discussed previously, now that Trump has taken office and started to govern, his administration’s economic plans will become more clear. We would expect these dynamics to fully play out at least over the course of 2017. expects volatility to remain elevated around these developments.
Global markets were generally higher on Friday as US stocks jumped to another record and crude oil rallied and investors reignited reflation trades while awaiting details of the Trump administration’s plan to cut taxes. Former Goldman Sachs president Gary Cohn is reportedly leading the effort to craft the tax overhaul, further lifting optimism that the plan will be business friendly.
Over the weekend, Trump did soften his line on Japan and China and met with Japanese Prime Minister Shinzo Abe, with the two affirming the nations’ close relationship. Trump also committed to bolstering trade with Japan and Pacific allies (including Australia & NZ), stepping back from his recent anti-trade rhetoric.
Once again investors are weighing pro-growth policy reforms such as tax cuts and infrastructure spend, against restrictions on trade & immigration which could offset their effect. As we have discussed previously, now that Trump has taken office and started to govern, his administration’s economic plans will become more clear. We would expect these dynamics to fully play out at least over the course of 2017. expects volatility to remain elevated around these developments.
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