“Trump-Rally”, as we call the New York stock indices growth after Trump victory, continued on Tuesday, as both the Dow Jones and Nasdaq set a new record values. Markets are awaiting the positive effects Trump’s Presidency (lower taxes, less regulation, announced infrastructure projects) from November significantly increased and they are not much unsettled even some controversial Trump moves.
Oil prices significantly fall yesterday on the second day in a row, slipped below 55 dollars for a 159-liter barrel. Oil traders are worried mainly due to increasing US production, since production slate revives faster than forecast. On the other hand, the “problem” on the demand side. Growth in Chinese demand last year was the lowest in at least three years. Arrangement OPEC and some producers reducing production quotas (a total of 1.8 million barrels to July 2017) at the end of last year caused a rise in oil prices well above 50 dollars, but when such a market balance, as it is now, continued strong growth questionable.