>> It's fair to say Donald Trump has the ear of the markets. But right now, he's not telling them what they want to hear. European stocks were down nearly 1% in reaction to his immigration curbs. If not a shock, a moment of realization, perhaps, says Reuters Chief Markets Correspondent, Jamie McGeever.
Even though nobody was in any real doubt that he would press ahead with maybe some of the more divisive and controversial elements of his campaign. This has come to pass and lo and behold, investors are kind of waking up to the fact that this is gonna happen.>> Until now, markets have listened to the other side of Donald Trump.
The side that talks about boosting spending and spurring growth. The side that sent the FTSE to an all time high, but the protectionist agenda is now coming into view too.>> We could be in for a period of kind of double vision if you like as far as investors are concerned.
Will they choose to focus on what they hope to be more positive and market friendly policies. Or will that focus on the anxiety towards maybe his more isolationist and damaging policies for trade and world growth etc.>> That's not the only worry facing markets. A rise in German inflation pushed up Euro's own borrowing costs, while political risk in France sent ten-year yields to a 16 month high.
And then, of course, there's Brexit.>> I suspect after two or three months of a more glass half full outlook, we could be in for a period of maybe a bit more caution and glass half empty.>> But, who's to say how long that will last? Across 2017 as a whole, Reuters' polls are predicting single-digit growth.