The moves point to an emerging reckoning that Trump’s policies as a president may differ from his promises touted on the campaign trail. As the market jolt subsides, focus is turning to the other big events: the Federal Reserve’s easing path and China’s fiscal stimulus.
After an initial stampede into “Trump Trades”, investors in some asset classes are tapering their enthusiasm as they question whether Donald Trump as a president will be able to push through his ambitious tariff proposals.
The dollar reversed much of its post-election surge by Thursday’s close, and is trading little changed on Friday. Treasury yields have also returned to recent ranges following a two-day whipsaw. Chinese stocks and the yuan, earlier hammered by concerns over higher tariffs, have since gained ground.
