A Tamer Trump ?

Asian markets turned higher on Thursday as Donald Trump’s deal to raise the US debt ceiling gave investors some much-needed good news after the North Korea-fuelled sell-off this week.

While tensions over Pyongyang’s weekend nuclear test remain high, Trump’s insistence to Chinese counterpart Xi Jinping that military action was not his “first choice” and a call for a diplomatic solution provided some solace for now.

Trump agreed a deal with his Democrat rivals to ease the US borrowing limit until December 15 in order to avert a crippling shutdown of the government and also provide funding to help the recovery from Hurricane Harvey in Texas and Louisiana.

“We essentially came to a deal, and I think the deal will be very good,” he said after meeting leaders of both parties in the Oval Office.

During the talks Republicans had called for a long-term deal before Trump shocked the room by jumping in to back Democrats’ short-term fix.

The news provided a lift to Asian investors and raised hopes again for the president’s market-friendly economic agenda, including tax reform and infrastructure spending.

“Republican back-room squabbling aside I think we all have to agree with Senate Democrat Minority Lead Schumer that this was ‘a positive step forward’,” said OANDA head of Asia Pacific trading Stephen Innes.

Yahoo News via AFP

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

Latest posts by Stephen Innes (see all)