Like this:
Like Loading...
" />
Published On: Fri, Feb 24th, 2017

Stocks Fall Ahead of Trump’s Fiscal Policy Speech: Markets Wrap

(Bloomberg) Equities retreated Friday as a glum set of European corporate earnings compounded investor nervousness before U.S. President Donald Trump’s speech before Congress next week. Gold extended its rally as the dollar edged lower.
U.S. stocks fell across the board with all major indexes lower. The Dow Jones Industrial Average, which was down 0.24 percent at 11:21 a.m. in New York, has hit daily highs for the past 10 sessions, its longest streak since 1984.
“Markets are pricing in the Trump agenda and they’re pricing in lot of high expectations,’’ Stephen Wood, chief market strategist for North America at Russell Investments in New York, said by phone. The firm oversees more than $258 billion. “The likelihood that there are going to be some legislative and political bumps on the road is certainly very high. A rally predicated on political policy can expect some volatility within it.’’
Gold rose for a fourth week after U.S. Treasury Secretary Steven Mnuchin said Thursday that he expects low borrowing costs to persist, sparking a drop in the dollar. Oil pared a weekly advance, while silver headed for the longest run of weekly gains since 2006.
The rally in global equities that helped push their value above $70 trillion is losing momentum as money managers grapple with political uncertainty and the Federal Reserve’s schedule for lifting borrowing costs. In Trump’s address before a joint session of Congress on Feb. 28, the president is expected to lay out his plans for tax and health care reform and infrastructure spending.
Traders are taking a wary stance heading into the weekend before the speech.
“I’d love to hear prioritization,” Bob Doll, chief equity strategist at Nuveen Asset Management, said on Bloomberg Television. “If the president makes a list of all the things he wants to do, it’s a long list, like most presidents. It’s time for him to begin to focus. Here is number One, number two, number three. Here is what we do to get them done and the rest we’ll get through next year.”

%d bloggers like this: