Stocks recover as Trump anxiety gives way to tentative hope
Hope that the Trump administration will now prioritise tax reforms encourages traders to look past doubt about Donald Trump’s ability to deliver on his promises
London — Stocks recovered while the dollar rose off four-month lows on Tuesday as anxiety over Donald Trump’s setback on healthcare reform gave way to tentative hope for the US president’s planned stimulus policies. The hope that the Trump administration will now prioritise tax reforms coupled with still-robust economic data and corporate earnings forecasts spurred some investors to look past creeping doubt about Trump’s ability to deliver on campaign promises. Europe’s Stoxx 600 rose 0.4% helped by financials and pharmaceutical stocks. The dollar index against a basket of major currencies edged up 0.1% to 99.252, after plumbing a trough of 98.858 overnight, its lowest level since November 11. "Risky asset markets have rebounded from yesterday’s opening low, supporting our view of the current market setback as a risk pause and not a turning point towards generally lower risk valuations," analysts at Morgan Stanley said in a note to clients. The Trump administration’s failure to undo...
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