Global weekly: Trump bump

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So far so good. Markets are in a positive mood, given improving confidence indicators, an earnings season that, so far, is positive and the pro-growth stance of US President Donald Trump.

US President Donald Trump is surprising the electorate by doing exactly what he said he would. In his first week at his new job, he has signed Executive Orders related to the building of a wall along the Mexican border and has withdrawn from the Trans Pacific Partnership. Stock markets continue to be encouraged by his pro-business policies.

But markets also have solid fundamentals and the earnings season to be pleased with. While still “early days,” the US earnings season has so far been slightly better than expected. Confidence indicators also continue to improve, including the Philly Fed Index and manufacturing indicators in the US, eurozone and Japan. Germany’s January Ifo Business Climate Index, an early indicator of economic developments, however, was lower than expected and bears watching.

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