By: Mahmoud Gamal
Mubasher: Investors are anticipating Donald Trump’s first address to a joint session of Congress on Tuesday, as it is expected to have a big impact on the business environment in the US.
Financial analyst at ForexTime (FXTM) Hussien El-Sayed told Mubasher that the speech is an opportunity for the president to support the record-breaking rise in the stock market.
On Friday, Dow Jones saw its longest streak of record highs in three decades.
Markets are anticipating a lot of good news; any disappointments from Trump’s speech regarding tax cuts could lead to profit-making trade, El-Sayed added.
The analyst also indicated that what the US president currently needs is to reassure the timing of his proposed tax reforms, and to reveal more details about his trade and spending policies.
It is time for Trump to change his tone and rearrange his priorities, since he needs a clear plan to maintain the current stock levels, El-Sayed stated.
Investors are doubtful about stock rises, which led to gold prices reaching their highest level since 11 November by exceeding $1,260 per ounce.
According to El-Sayed, investors are not willing to give away any gains in the capital market; yet, they are cautious about any huge correction waves.
The CEO of Adaa Financial Services, Ali Hamoudi, also believes that investors in global markets are currently having new major concerns.
Those fears surfaced after newly-appointed treasury secretary Steven Mnuchin said during his speech on Thursday that the Trump administration would officially label China as a currency manipulator.
Hamoudi pointed to the secretary’s recent remarks, saying they could lead the US to a trade war with China by imposing extra tariffs on bilateral trade.
Political fears regarding the French elections and their effect on the future of the European Union made European markets very volatile to political concerns, he added, noting that fluctuations in oil prices could also have their effects on the performance of the European markets.
Translated by: Moslem Ali
