Dollar retreats as Trump takes over; most global stocks fall

NEW YORK—The dollar retreated Monday, with warnings of wild volatility ahead, as Donald Trump began his presidency by attacking global trade deals and promising to put America first.

Most large global equity markets also fell amid uncertainty over the new US leader’s plans. Wall Street, London, Frankfurt, Paris and Tokyo all closed lower.

“America first, markets second,” said LCG analyst Jasper Lawler of the day’s sentiment on trading floors.

“Attempts to break out into new highs for the year have been temporarily shelved after Donald Trump opted for a protectionist, anti-establishment inauguration address,” his note to clients added.

In foreign exchange, the euro jumped to $1.0763 from $1.0697 on Friday.

‘Apocalyptic tone’

“The greenback … seems to have been shaken both by the apocalyptic tone set by Trump at his inauguration, and the global protests that greeted the former Apprentice host’s ascension to the highest office in the land,” said Spreadex analyst Connor Campbell.

Trump followed up an inauguration speech seen as angry and protectionist by making his first official act the withdrawal from the 12-nation Trans-Pacific Partnership. Trump also said he would renegotiate the North America Free Trade Agreement, threaten to impose border taxes, and his chief spokesman said the new president would not hesitate to confront China over the South China Sea.

READ: Trump torpedoes Pacific trade pact

Investors greeted Trump’s surprise election win in the hopes he would win pro-growth measures such as public works spending, lower taxes and regulatory reforms. Trump confirmed on Monday he plans to pursue those priorities, but markets have been worried the tough talk will lead to a trade war.

Doubts about his spending promises also took their toll on the US currency.

“Sellers swiftly exploited the lack of clarity in the (inauguration) speech regarding the proposed fiscal stimulus measures,” said Lukman Otunuga, an analyst at FXTM, predicting more trouble ahead for the greenback.

“The growing threat of Donald Trump’s proposed fiscal stimulus failing to keep up with market expectations may ensure dollar weakness becomes a recurrent theme in the short term,” he said.

The US unit was down more than four percent on the yen from the highs touched late in December. It was also well down against the euro and even against the pound despite concerns about Britain’s exit from the European Union.

“I suspect we’re entering extremely volatile times for the dollar,” Stephen Innes, senior trader at OANDA, said in a note.

Trump last week said the greenback was too strong against China’s yuan and claimed this was “killing” the US economy.

Key figures at 2200 GMT

New York – Dow: DOWN 0.1 percent at 19,799.85 (close)

New York – S&P 500: DOWN 0.3 percent at 2,265.20 (close)

New York – Nasdaq: DOWN less than 0.1 percent at 5,552.94 (close)

London – FTSE 100: DOWN 0.7 percent at 7,151.18 points (close)

Frankfurt – DAX 30: DOWN 0.7 percent at 11,545.75 (close)

Paris – CAC 40: DOWN 0.6 percent at 4,821.41 (close)

EURO STOXX 50: DOWN 0.9 percent at 3,271.41 (close)

Tokyo – Nikkei 225: DOWN 1.3 percent at 18,891.03 (close)

Shanghai – Composite: UP 0.4 percent at 3,136.77 (close)

Hong Kong – Hang Seng: UP 0.1 percent at 22,898.52 (close)

Euro/dollar: UP at $1.0763 from $1.0697

Pound/dollar: UP at $1.2524 from $1.2365

Dollar/yen: DOWN at 112.73 yen from 114.58 yen

Oil – West Texas Intermediate: DOWN 47 cents at $52.75 per barrel

Oil – Brent North Sea: DOWN 26 cents at $55.23 per barrel

source: business.inquirer.net

President Donald Trump acts swiftly at dawn of new era

WASHINGTON—President Donald Trump assumed power Friday with a fiercely nationalistic vow to put “America first,” taking a stinging swipe at the legacy of his predecessor hours after reciting the oath of office.

Hundreds of thousands of people stood on the rain-splattered National Mall to see the 70-year-old Republican billionaire be sworn in, and deliver a stridently populist call-to-arms.

Trump promised to lift up the nation’s disenfranchised and those who felt betrayed by the political elites, declaring with vindication that “the forgotten men and women of our country will be forgotten no longer.”


“From this day forward, a new vision will govern our land,” Trump said, promising an end to business-as-usual in Washington. “From this moment on, it’s going to be only America First.”

Adhering to his vow to immediately start dismantling the healthcare reforms passed by outgoing president Barack Obama, Trump signed his first executive order in the Oval Office, targeting Obamacare.

It commands government offices to grant all possible exemptions to limit the “economic and regulatory burden” of the Affordable Care Act, as a prelude to a full repeal.

As the day’s ceremonial rituals drew to a close, Trump and his wife Melania stepped out — the first lady stunning in an off-the-shoulder ivory gown — to lead the dance at one of the string of glitzy inaugural balls being held across the capital.

The pair slow-danced in a close embrace to a version of Frank Sinatra’s “My Way,” before they were joined by Vice-president Mike Pence and his wife Karen, and both families’ children.

“Well, we did it,” Trump told the revelers. “We won. And today, we had a great day.”

“This was a movement. And now the work begins.”

Power to the people 


During his inaugural address, Trump vowed that his presidency would usher in a new political era.

“We are transferring power from Washington, DC, and giving it back to you, the people,” he said.


Moments earlier, the incoming US leader had placed his left hand on a bible used by Abraham Lincoln and recited the 35-word oath spoken since George Washington.

The popular turnout was visibly smaller than for Obama’s two inaugurations, in 2009 and 2013, with sections of the mall and bleachers along the parade route left nearly empty.

Throngs of Trump’s opponents also converged on Washington.

Most of their protests — by an array of anti-racist, anti-war, feminist, LGBT, and pro-immigration groups — were peaceful, but sporadic violence marred the day.

Several hundred masked, black-clad protesters carrying anarchist flags smashed windows, lit fires and scuffled with riot police blocks from the parade held in Trump’s honor, with at least 217 people arrested for vandalism.

Even the peaceful protesters were intent on spoiling Trump’s party — letting out a deafening roar as the presidential limousine rolled past.

“Not my president! Not my president!” they yelled, as the pro-Trump crowd in nearby bleachers chanted “USA! USA!”

‘This carnage stops here’

For Trump’s critics, there was disbelief that a man who 19 months ago hosted “The Apprentice” reality TV show is now leader of the free world — sworn in with a 37 percent approval rating, the lowest on record, according to a CBS News poll.

Public interest lawyer Renee Steinhagen, 61, came from New York to join the protests.

“I’m doing this to express resistance to the change that await us,” she said. “This administration seems more extreme than any other. This is a simple act of resistance. It’s better than staying at home.”

Trump’s inauguration caps the improbable rise of the Manhattan real estate magnate who has never before held elected office, or served in government or the military.

Rather than appealing to desire to bridge political divides and lift Americans’ gaze to the horizon, his first address to the nation was deeply unorthodox.

Trump painted parts of America as a dystopian hell, with mothers trapped in poverty and “rusted-out factories scattered like tombstones across the landscape.”

“This American carnage stops right here and stops right now,” he said.

It was a deliberate and striking contrast from the uplifting message of Obama, who was among the dignitaries in attendance.

Obama and his wife Michelle departed the Capitol by helicopter minutes after the swearing-in, turning a page on eight years of Democratic leadership in the White House.

Alliances

A first two Trump cabinet members were sworn in after being confirmed Friday by the US Senate. Both are retired generals: Secretary of Defense James Mattis, and Homeland Security Secretary John Kelly.

For the next few weeks the White House plans a series of daily executive orders to roll back Obama’s agenda.

Trump has also vowed to re-examine long-running alliances with Europe and in Asia.

“We will reinforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the Earth.”

source: newsinfo.inquirer.net