Wall Street falls back as reflation trades take a hit on Trump
|Wall Street dropped on Tuesday on the back of Trump's comments.
US dollar index tumbles toward 100.00
We are entering a phase of uncertainty again and market jitters in the wake of Trump putting forward his bias in respect to geopolitical and global economic systems with america's interests at the heart of objectives.
President-elect Donald Trump, who will be the 45th president by the end of this week, commented on the dollar. U.S.over the weekend and with the markets in the US that were closed on Monday for Martin Luther King Jr. Day holiday, on returning, US investors scrambled away from US holdings sending
The Dow Jones Industrial Average down by 97 points, or 0.5%, to close at 19,787 and the S&P 500 index by 10 points, or 0.5%, to close at 2,264, with financials taking a hit while US yields slumped, with the 10yr slipping 5bp to 2.347% as Trump stimulus and tax reform hopes also taking a hit on the back of further remarks from Trump. "Trump also criticised a key-plank of the House Republicans’ corporate-tax plan - a border tax designed to boost exports and cut imports - calling it too complicated," explained analysts at Westpac, adding, "That triggered a bigger re-think of expectations for stimulus and tax reform under a Trump administration, hitting all the key Trump “reflation trades.”" The Nasdaq Composite Index also dropped and fell by 43 points, or 0.8%, to close at 5,531.
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