U.S. yields, dollar fall; Trump offers little policy detail

Wed Jan 11, 2017 4:41pm EST
 
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By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - U.S. Treasuries rallied across the board on Wednesday, while the dollar fell to one-month lows after President-elect Donald Trump, in a widely-awaited press briefing, failed to provide clarity on future fiscal policies.

U.S. stocks also weakened initially after Trump took aim at the pharmaceutical industry for charging high prices. He said pharmaceutical companies are "getting away with murder."

"The market was disappointed by Trump's lack of specificity and details on his fiscal spending plans," said Kathy Lien, managing director at BK Asset Management in New York.

Treasuries have since held gains despite U.S. stocks recovering from Trump-inspired losses.

In his first press briefing as U.S. president-elect, Trump presided over a wide-ranging session that touched on topics such as allegations of Russia spying, Mexico, his business interests, and drug pricing.

But the briefing, which lasted longer than expected, did not break new ground, analysts said. It contained no details on tax cuts and infrastructure spending, which were two factors that ignited a five-week global bond market selloff after his surprise presidential win.

The Dow Jones industrial average closed up 0.5 percent on the day at 19,954.28, the S&P 500 rose 0.3 percent to 2,275.32. The Nasdaq Composite added 0.2 percent, to 5,563.05, a record high.

Other global stock indexes edged higher as well.   Continued...

 
A trader works on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York, U.S., January 9, 2017. REUTERS/Lucas Jackson