>> Is the honeymoon over between investors and Donald Trump, just three days into his presidency? His election lifted world stocks to multi-year highs earlier this month with investors buoyed by the prospects of corporate tax cuts and economic stimulus. But when the businessman took the reins of power on Friday, his inauguration address was interpreted by many as protectionist and lacking in detail.
And saw a retreat by investors around the globe. The dollar hit a six-week low on Monday. European stocks fell 0.7% in early trade. Japan's Nikkei dropped 1.1%. While other Asian shares were more resilient, in part due to the weakened US dollar. But while the bigger picture remains with many markets still near record highs.
Reuters markets editor, Mark Dolan, says investors are searching for substance.>> I think the best way to describe this is that Trump got the benefit of the doubt instantly by world markets after the election and now that benefit of the doubt is gone. Investors will need to see follow through from here that his policies or his rhetoric will be followed by very concrete policies that will deliver on the ground.
>> The market is also reacting to concerns about Trump's aggressive trade rhetoric. Australian shares ended 0.9% down on Monday, after the new administration signaled its intentions to withdraw from the Trans Pacific Partnership. The global response prompting America's future stock index to slip in early trade.