Yes, this is happening | Calamatta Cuschieri

And so it happened. As Donald Trump is sworn into office as the 45th President of the United States, both his toughest critics and strongest supporters need to take a deep breathe and consider where they want to go from here. With Trump finally having the power of the US presidency in his hands, markets are bracing for plenty of action in the week ahead.

Expectations are high for a flurry of excitement and activity from Washington this week as President Trump gets to work. But markets are likely to remain in the dark and won’t be getting much in the way of clues on how quickly the new administration will push the tax and growth policies that have driven both stocks and interest rates higher.

Trump is expected to make the repeal of Obamacare a priority. He is also seen moving quickly on the topics of trade with the likes of Mexico and Canada, immigration and regulation in areas like energy. However, it is less likely there will be much new on the programs markets care about the most, since they also must wind through Congress.

As traders turn their attention on Washington, there are also about 20% of the S&P companies reporting in the coming week, including the likes of Alphabet, Boeing, Caterpillar, Microsoft and McDonalds. Of the S&P companies already reporting, a healthy 65% have beaten earnings estimates so far.

Long week in Britain

Seeking to prepare Britain’s economy for life outside the European Union, Theresa May is anticipated to talk about 'sector deals'

Theresa May is about to discover a week really is a long time in politics. On Monday, the Prime Minister launches her industrial strategy, before discovering on Tuesday whether the Supreme Court thinks that she, rather than Parliament, carries the power to trigger Brexit. Then it’s off to the US to meet President Donald Trump.

Seeking to prepare Britain’s economy for life outside the European Union, May is anticipated to talk about “sector deals” whereby the government backs areas where it anticipates the UK can excel.

Markets react

Markets in Asia and Europe opened lower on Monday morning, with traders feeling the full force of uncertainty now that there is a new leader of the free world.

Shares of Toshiba surged 9% on Monday after several media reports that it is in the midst of preparing for the sale of its semiconductor business.

There was good news coming from the energy sector. The energy ministers of the organisation of petroleum and Exporting Countries (OPEC) and non-OPEC countries said they had a strong start to lowering oil output according to a Reuters report. The ministers said around 1.5 million barrels per day have been taken out of the market. Crude oil was trading just under $53 a barrel on Monday morning.

This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.