23 Jan 2017

World markets wait for detail on US law changes

10:01 am on 23 January 2017

Global markets are expected to remain cautious following the inauguration of United States president Donald Trump, who campaigned on protecting the world's largest economy from other countries.

US President Donald Trump signs an executive order as Vice President Mike Pence and Chief of Staff Reince Priebus look on.

US President Donald Trump signs an executive order as Vice President Mike Pence and Chief of Staff Reince Priebus look on. Photo: AFP

Mr Trump was officially sworn in as the 45th president of the US over the weekend.

In his first speech as President, Mr Trump said the vision of the new administration was going to be "only America first".

"Every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families. We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs."

The US dollar and stocks slipped a bit in late trading on Friday, but GMI senior economist John Carran said Mr Trump's inauguration speech was more partisan than presidential.

Mr Carran said the speech played to the president's supporter base, but did not offer much to investors and businesses, who were awaiting more detail on proposed changes to tax and regulations.

"They are waiting to see whether and how fast the Trump administration can get some of those concrete measures through Congress - you are looking at 18 months to two years before some of these things are enacted," he said.

The new US administration has said its trade strategy to protect American jobs will start with withdrawing from the Trans-Pacific Partnership.

A White House statement issued soon after Mr Trump's inauguration said the United States would also "crack down on those nations that violate trade agreements and harm American workers in the process".

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