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Global Markets ‘More Assured’ after Trump’s ‘Less Intense’ Speech | ASHARQ AL-AWSAT English Archive 2005 -2017
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President Trump addresses Joint Session of Congress. REUTERS/Carlos Barria

London – Global markets positively received the speech of US President Donald Trump infornt of the Congress on Wednesday, although he focused on internal economy and did not give further details on his future plans.

Most of the economic mediums were comfortable for the “less intense and offensive” speech.

Trump called for economic reforms and commercial polices to reactivate the US economy generator. He also promised to allocate USD1 trillion of private and public investments to develop infrastructure in the US.

The president also promised massive relief for the middle classes, reiterating his pledge to impose taxes on foreign imports to protect the US industry.

Trump expressed his endorsement of free trade on one hand and fair trade on the other hand.

US Dollar Rate Hikes

The US dollar reached its highest rate in the past seven weeks supported by the raise of interest rate forecasts made by two major policies-makers in the Federal Reserve System (the central bank of the United States).

Federal Reserve Bank of San Francisco President John Williams said he expects interest-rate increase to receive serious consideration when he and other US central bankers gather in March.

Dow Chemical Company Breaks 21,000 Points

Observers see that the positive reflection on global markets resulted from Trump’s speech that had a more presidential approach. They pointed that the president’s performance alleviates previous international concerns of him adopting hasty and intense policies.

US shares reached record rates including Dow Chemical Company share that broke the 21,000 points for the first time.

European Revival

European shares hiked on Wednesday and the basic materials sector was the best performer after Trump pledged allocating USD1 trillion to the infrastructure projects.

European sealed deals increased amidst the rise of Banco de Sabadell share, fifth biggest Spanish bank, after selling its retail unit in Florida for USD1 billion.

Japanese shares also recorded their highest increase since two weeks in the conclusion of Wednesday’s trading, especially after attention was diverted to the US monetary policy since Trump’s speech had no details or surprises.