Washington, US (BBN)-The dollar slumped after Donald Trump in his first days in office offered little news on his plans to boost growth while stirring concerns over protectionism.
Metals and Asian shares outside of Japan rose, reports Bloomberg.
The US currency fell against its major peers and gold added to a four-week advance. Japan’s Topix index lost 1.1 per cent on the strengthening yen as Asian traders reacted for the first time to Trump’s inauguration.
Shares in Shanghai and Taiwan climbed. Copper paced gains among industrial metals as the US president reiterated plans to rebuild infrastructure.
Trump began work as US president after saying he’d place American interests at the forefront of his agenda.
His pro-growth campaign-trail pronouncements helped drive a rally in equities since November, while the dollar surged and bonds slumped.
Some of those trades are unwinding this month as investors assess whether those moves had pushed prices too far, too fast.
Money managers will be dissecting earnings from some of the world’s largest companies this week with Alphabet Inc., Samsung Electronics Co. and Alibaba Group Holding Ltd. all reporting results.
“Markets are now waiting for more evidence that Donald Trump will deliver on fiscal stimulus and deregulation,” said Shane Oliver, Sydney-based global investment strategist at AMP Capital Investors Ltd., which manages about $120 billion.
“Shares remain vulnerable to a further correction or consolidation in the next month or so.”
HERE ARE THE MAIN MOVES IN MARKETS:
CURRENCIES
The yen rose 0.9 per cent to 113.61 per dollar as of 1:23pm in Tokyo.
The Bloomberg Dollar Spot Index slid 0.5 per cent.
It has fallen for four straight weeks, its longest retreat since February.
The currency lost 0.8 per cent against the South African rand and 0.7 per cent versus the Mexican peso.
STOCKS
Australia’s S&P/ASX 200 Index fell 0.8 per cent, after sliding 1.2 per cent last week.
The gauge reached the highest since May 2015 earlier this month.
The Shanghai Composite was up 0.3 per cent, while the Hang Seng index rose less than 0.1 per cent, paring an earlier advance of as much as 0.8 per cent.
Taiwan’s Taiex index added 0.8 per cent.
Contracts on the S&P 500 Index declined 0.3 per cent Monday after the gauge advanced 0.3 per cent on Friday.
BONDS
10-year Treasury yields declined 3 basis points to 2.44 per cent.
The yield on 10-year Australian government bonds lost 3 basis points to 2.76 per cent.
COMMODITIES
Gold rose 0.5 per cent to $1,215.84 an ounce.
The metal has increased for 10 of the past 11 sessions.
West-Texas Intermediate crude oil fell 0.1 per cent to $53.18, erasing an earlier gain of as much as 0.5 per cent.
Copper futures jumped 1.5 per cent in London.
Aluminum added 0.8 per cent to the highest since May 2015 while lead and zinc advanced at least 1.1 per cent.
Iron ore dropped 2.1 per cent, bringing its four-day decline to almost 5 per cent.
Iron ore’s headed for a sharp decline as higher-grade supplies from Brazil and Australia are set to increase, according to Citigroup Inc.
BBN/SK/AD