Mobius, co-founder of Mobius Capital Partners, said U.S. markets have continued to climb higher partly because of Trump’s policies. The president made several moves that many considered pro-business since he took office in 2017, such as slashing corporate tax rates.
He added that for now, “it doesn’t look likely” that Trump will lose. However, sentiment in the media appeared to be “overwhelmingly” against the president — and that could continue to build until the election next year, he explained.
· Asian shares fell to six-week lows on Thursday while the dollar jumped to two-year highs as the U.S. Federal Reserve poured cold water on market expectations of a lengthy easing cycle following a 25 basis-point rate cut.
MSCI’s broadest index of Asia-Pacific shares outside Japan faltered 0.6%, extending losses for a fifth day to the lowest since mid-June.
Global share markets recoiled overnight after U.S. Federal Reserve Chairman Jerome Powell said Wednesday’s easing was “not the beginning of a long series of rate cuts”.
Powell characterized the rate cut as “a mid-cycle adjustment to policy”, citing signs of a global slowdown, simmering U.S. trade tensions and a desire to boost too-low inflation. Markets took that as a sign that sharp further cuts were not imminent.
· Japan’s Nikkei share average recouped early losses and ended marginally higher on Thursday, supported by a weaker yen which helped offset disappointment that the U.S. Federal Reserve is not embarking on a lengthy easing cycle.
The Fed on Wednesday lowered rates for the first time since 2008, as widely expected, but Chairman Jerome Powell said the move was not the start of a long series of rate cuts, sending U.S. share markets lower.
The Nikkei ended the day up 0.09% at 21,540.99 points.
· China stocks ended lower on Thursday, tracking losses in other Asian markets, after the U.S. Federal Reserve’s dovish comments dampened long-term outlook for a rate cut and latest Sino-U.S. trade talks ended with little sign of progress.
The blue-chip CSI300 index fell 0.8% to 3,803.47, while the Shanghai Composite Index ended down 0.8% at 2,908.77.
The pan-European Stoxx 600 pared early losses to trade around the flatline, on the back strong performances from the financial services and banking sectors, which climbed 1.6% and 1.2% respectively following better-than-expected earnings from major banks. Basic resources stocks slipped 1.8%.
Reference: CNBC
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