We wrote on
Wednesday how the U.S. stock market, after some initial scare and sell-off
after Donald Trump’s victory, eventually sobered up. At the close of trading on Wednesday November
9, the Dow Jones Industrial
Average index rose by 1.4%, which was followed on by another 1.2% rise on
Thursday. The Nasdaq, on the other hand, was weaker over the past couple of
days. The market is remaining inherently optimistic about improved economic
growth domestically. This echoes the words of Warren Buffet which he spoke on
Friday: “The stock market will be higher… and it would have been with Hillary,
and it ... will be with Trump.”
Since Tuesday, the strongest
Trump effect has been evident in the infrastructure sector stocks as the
President-elect’s stimulus plan focused on infrastructure investment could be
in the range of US$1 trillion in total over the next several years. Such
infrastructure stocks as Vulcan Materials Company (Symbol: VMC) and Martin
Marietta Materials, Inc. (Symbol: MLM) rose by 14%-16% on Wednesday-Thursday. Copper,
an essential metal for any construction project, was up by almost 12% over this
period.
The Mexican peso remains the most vivid market loser since Trump’s win. It weakened sharply from 18.3 pesos per US dollar before the election to more than 21 pesos per US dollar currently. Trump’s threat to abolish NAFTA is the catalyst for this weakness.
Ukrainian Credit Union Limited
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