Global shares steady ahead of Trump’s inauguration
KUALA LUMPUR, Malaysia — Global shares were steady in cautious trading Friday ahead of the inauguration of President-elect Donald Trump. China’s report that its economy grew at a 6.8 per cent pace in October-December was in line with expectations.
KEEPING SCORE: Germany’s DAX was steady at 11,599.05. The CAC 40 of France added 0.2 per cent to 4,848.81. Britain’s FTSE 100 lost 0.5 per cent to 7,208.44. Wall Street looked headed for a subdued start, with the future for the Dow Jones industrial average down 0.1 per cent and the S&P 500 future up 0.2 per cent.
TRUMP’S INAUGURATION: The Dow Jones industrial average erased its gains for 2017 on Thursday, falling for the fifth day in a row as the post-election Trump rally waned ahead of the inauguration. Investors will be looking for clues in Trump’s inauguration speech for his plans on fiscal stimulus, tax cuts and trade. On Thursday, the Dow fell 0.4 per cent, to 19,732.40, slightly below where it finished 2016 but close to its record closing high of 19,974.62, set one month ago. The Standard & Poor’s 500 index also fell 0.4 per cent, to 2,263.69. The Nasdaq composite lost 0.3 per cent to 5,540.08.
ANALYST QUOTES: “Markets are now waiting for more evidence that Donald Trump will deliver on fiscal stimulus and deregulation but uncertainty remains high about what he will do on trade,” Shane Oliver of AMP Capital said in a commentary. “The risk of a tit-for-tat trade war between the U.S. and China is high, particularly if Trump formally brands China a currency manipulator.”