Trump proves he is not just talk
|World stocks are on the rise once more, with the Dow at record highs and the FTSE enjoying its best day since the US election.
• FTSE enjoys best day since US election
• Dow highlights Trump effect
• Oil falls despite inventories drawdown
Global markets have enjoyed yet another day in the green, with the FTSE heading towards its best day since the US election. Once more, the focus upon a potential bailout for the beleaguered Italian bank Monte dei Paschi has sent financials to the top of the leader board as fears of a wider banking crisis begin to fade.
The Dow has once again created a new record high, in what has been an incredible fallout from the US election. Amid significant speculation that Donald Trump is all talk and no action, recent evidence shows that he cannot wait to get involved in keeping US business booming, as agreements with SoftBank and Carrier demonstrate. His strategy may not necessarily be seen as a positive for other nations, yet it is making the US the place to be for investors right now.
A third consecutive week of drawdown in US crude inventories has failed to provide much support for oil prices amid a wider weakening on the day. The bullish sentiment evident since OPEC’s agreement to limit supply is perhaps finally coming under some scrutiny as we approach this weekend’s meeting between OPEC and non-OPEC member approaches. The whole deal could quite easily come tumbling down should the likes of Russia fail to agree to substantial cuts and while it is not likely, the risk is pushing investors to begin taking profits.
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