Investors Cautious Ahead of Trump Speech

Investors adopted a cautious tone at the end of a positive week for global stocks ahead of a major speech from U.S. President Donald Trump. Raw-materials shares slumped, while gold headed for a fourth weekly increase.

The dollar was lower against most major currencies after weakening Thursday on Treasury Secretary Steven Mnuchin’s statement that fiscal stimulus effects on the economy this year may be limited. European shares slid amid corporate earnings, while Tokyo shares dropped even as the yen retreated after a two-day gain. Commodity producers dragged equities lower after iron ore tumbled. Oil pared a weekly gain.

A fifth weekly advance for global equities that’s helped push their value above $70 trillion is losing momentum as money managers grapple with political uncertainty and the Federal Reserve’s schedule for lifting borrowing costs. Markets from stocks to currencies have been subject to fluctuations as investors hang on each word from central bank officials and politicians.

Bloomberg

The Mnuchin Media Roadshow

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MS

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.