President Trump’s first foreign tour shifted the market’s focus away from his FBI scandal to new, multi-billion-dollar defence deals signed in the gulf region, resulting in a relief rebound in energy and defensive stocks last night. 

The three major US stock indices continued to rise last night, with the Dow closing up 0.43% at 20,894, the S&P 500 rising 0.52% to 2,394 and the Nasdaq surging 0.82% to 6,133.

Investors are also waiting for the White House’s budget proposal to be rolled out on Tuesday, which might involve massive cuts to the Medicaid social safety-net programs, while increasing Pentagon and border-security spending. Budget cuts over the next ten years are estimated to total US$1.7tn.

Treasury Secretary Steven Mnuchin will testify about Trump’s 2018 budget plan in the White House, in the president’s absence. 

This will be key to revitalising market confidence, especially as the market has started to ramp up its questions over the Trump Administration’s ability to drive reforms, due to the recent political turmoil.

CMC Markets is an execution-only service provider The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.