Sentiment wanes after Trump whirlwind

The dollar and stock sentiment suffer after yet another tumultuous appearance by Trump. Fortunately, despite weakness in Pharma and car makers, the strength of commodity prices have helped prop up the FTSE in early trade says Joshua Mahony, market analyst at IG.

Sentiment wanes after Trump whirlwind

The FTSE is suffering in the aftermath of yesterday’s Trump speech, with pharmaceutical firms Hikma and Shire proving a drag after the President elect promised lower US drug prices. Fortunately, the weaker dollar has helped commodity prices push higher once more, putting Anglo American, Rio Tinto and BHP Billiton at the top of the leader board.

Markets are still reeling from yesterday’s Trump whirlwind speech, which proved well worth the wait after he kept everyone waiting for the longest period, post-election, that any President elect has done. Among the circus of Russian hacking, fake news and the like, the big losers from yesterday’s speech appears to be pharmaceuticals and car makers with Trump expressing the will to bring down drug costs and impose a large border tax on firms moving operations abroad to then sell back into the US.

Perhaps the biggest loser from yesterday’s speech was the US dollar, which has been slammed throughout the night. The weakness evident in both the dollar and stock markets alike centres on the unwillingness of Trump to discuss in any detail the fiscal stimulus package which has proven the number one driver of optimism throughout markets post-election.

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