European stocks are set to open slightly higher after recording steep losses in the previous session amid expectations that President-elect Donald Trump’s attempts to boost the economy with fiscal stimulus may fuel inflation and allow the Federal Reserve to raise interest rates. U.S. bond yields continued to soar while the dollar hovered near a 3 month highs.
European futures pointed to a slightly higher open with Germany’s DAX opening 0.4 percent higher at 10668.3, France’s CAC 40 opening 0.1 percent lower at 4537.0, U.K.’s FTSE 100 set to open 0.1 percent higher at 6828.8 and the Euro Stoxx seen opening 0.3 percent higher at 3051.0 as of 8:00 GMT.
Asian markets plunged on Friday as the rally of the dollar weighed on demand for emerging market assets. It is worth noting that the greenback’s newfound strength stemmed from the ongoing sell-off in U.S. Treasuries. The dollar was last seen trading to new highs at 106.63 against the Japanese yen as of 7:45 GMT. Asian Markets closed mixed today with Japan’s Nikkei adding 0.2 percent to close at 17374.79, China A50 closing 0.6 percent higher at 10058.52, South Korea’s KOSPI close 0.9 percent lower at 1984.43 while Hong Kong’s Hang Seng dipped 1.4 percent to last trade at 22514.00 as of 7:45 GMT. India’s Nifty 50 also lost 1.8 percent to last trade at 8376.00.
Donald Trump’s White House victory moves tech giants and other corporation such as Apple and Microsoft, much closer to winning a big tax break on their trillions in foreign profits. Tax reform is shaping up as among the most fruitful areas of a Trump presidency. Both Trump and his congressional Republicans are focused on slashing tax rates on businesses, simplify and cut individual taxes, and let companies bring overseas profits into the country at a low tax rate.
But not all companies are on the president’s good side, Amazon’s Bezos, not long ago offered Donald Trump a one-way ticket into outer space. Earlier today, Bezos tried to make up for offending the president by tweeting out his congratulations to the president-elect, wishing him “great success”. It’s also worth noting that president Trump had formerly promised to bring down plenty of trouble on the Amazon market rally since the election, Amazon is currently trading down more than 3.8% percent as of 7:45 GMT.