Global markets were generally lower on Friday, although the US market made a late surge which saw the Dow Jones index experience its 11th straight day of gains (the longest since 1987).
Wall Street is trading at record levels since the election of Donald Trump as US president, spurred by his promises of tax reforms, reduced regulations and increased infrastructure spending. On the flipside, we see the key risk stemming from Trump being his anti-trade rhetoric, with a trade war being detrimental to the global economy.
For the week ahead, investors will be watching President Donald Trump’s speech before Congress on Tuesday closely. Markets are pricing in high expectations around Trump’s policy reform, and investors will be looking for any further clarity. The likelihood that there are going to be some legislative and political bumps on the road is high, and believe that some disappointment, and hence a shorter-term market correction is possible.
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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