LONDON: European stock markets climbed Friday before Donald Trump’s inauguration, with markets hoping that the US president’s speech will expand on his planned economic policy.
London’s benchmark FTSE 100 was 0.1 percent higher around the half-way stage, supported by a weak pound boosting exporters’ share prices and thanks to some positive Chinese data, traders said.
In the eurozone, Frankfurt’s DAX 30 index won 0.3 percent and the Paris CAC 40 gained 0.6 percent compared with Thursday’s closing levels.
“In focus today will be the inauguration of Donald Trump… with investors hoping that his speech comprehensively outlines his policy plans for the next four years,” said Accendo Markets analyst Mike van Dulken.
“Financial deregulation, infrastructure spending and tax reforms will be the key policy topics markets will be hoping receive some dedicated airtime.”
While he promised a big-spending, tax-cutting drive to fuel the world’s top economy, the tycoon has failed to provide any detail, leading to worries about his ability to deliver.
The dollar meanwhile recovered having slipped after Federal Reserve boss Janet Yellen this week indicated that the US central bank would take a wait-and-see approach to monetary policy, suggesting any rate hikes this year could be slow.
The dollar has soared since November on bets Trump’s fiscal policies would fan inflation and force the Fed to tighten borrowing costs.
