Tim Fox

While the equity markets are looking stable thanks to hopes of tax cuts in the US, the road ahead is not entirely clear of challenges

Janet Yellen's term is due to finish in February and markets are nervous about who will take her place and what President Trump wants from the new Fed leader

New stance by prominent state lenders has caught markets a little bit off guard

Period of uncertainty among investors, corporations and consumers likely to be extended

US speeches took aim at global leaders rather than addressing the concerns of the financial markets

The US Federal Reserve stuck to its forecast for another hike this year and for more rises to come in 2018 and 2019.

Last week saw an abrupt reversal in market sentiment after a period of exceptionally low volatility and an extended period of minimal market corrections.

Unless something unforeseen happens between now and the June Federal Open Market Committee meeting, it seems likely that the Fed will raise interest rates again.

The fund now expects the UAE’s economy to grow just 1.5 per cent this year (from a previous estimate of 2.5 per cent and down from an estimated 2.7 per cent growth in 2016).

The Federal Reserve's spring-like optimism is at odds with the deteriorating political environment in Washington.

The UK economy has performed well since last summer’s Brexit vote, leading the BoE and IMF to revise up their GDP forecasts.

Speculators have also played their part in the rollover in price. Although speculative investment in oil futures cooled somewhat in the previous week, the benchmarks were still heavily weighted towards long positions by the middle of last week.

Fiscal policy reform was to the financial markets the cornerstone of the Trump manifesto, but until now investors have been disappointed by the greater focus on immigration, the media, the judiciary and other issues.

If this is indeed a new start in the approach by Donald Trump to international relations, it is likely to be welcomed by the markets.

So far the only details about Donald Trump’s policies related to corporate tax reforms have been expressed as a way of penalising imports and boosting exports, couched as a means of forcing Mexico to pay for its border wall.