LONDON: World stock markets fell on Monday, led by a weaker opening on Wall Street as investors waited to see what policies US President Donald Trump might come out with this week, traders said.
“The unpredictable nature of Trump... makes it very difficult to anticipate what his next moves will be, as evidenced by his actions a week ago on immigration,” said Oanda analyst Craig Erlam.
“This may ensure for now, at least, that while markets have remained volatile, a more cautious approach will be adopted during the bedding-in period,” he said.
“Transatlantic politics remain ever dominant,” said Mike van Dulken, head of research at Accendo Markets.
While this week was expected to be quiet in terms of economic data and central bank decisions, quarterly earnings reports from a range of companies could provide some momentum, Erlam said.
Analysts said the subdued performance of the broader market was not surprising after US stocks rallied Friday following a solid jobs report and news the Trump administration was planning to loosen banking regulations enacted after the 2008 financial crisis.
This week’s calendar of earnings includes Coca-Cola, General Motors and Expedia.
Earlier, Tokyo ended 0.3 per cent higher, while Hong Kong added one percent and Shanghai closed up 0.5 percent.
But after early gains, European markets headed lower, weighed down by Wall Street, with London’s benchmark FTSE 100 index down 0.1 per cent, the Paris CAC 40 losing 0.8 per cent and Frankfurt’s DAX 30 also shedding 0.8 per cent.
The global banking sector meanwhile cheered Trump’s order to review key reforms enacted after the 2008 financial crisis.
The announcement was the first step towards scaling back tougher regulations on the banking industry, following Trump’s promise to cut red tape to fire up the world’s top economy.
“President Donald Trump has proven to be one of the biggest influences on global markets since winning the US election,” said Joshua Mahony, market analyst at IG trading group.
“Friday’s comments regarding a wish to reduce financial regulations provides yet another batch of winners, with banks rallying sharply.”
