Wall Street expects President Trump’s Mar-a-Lago Accord — a revision of multinational trade deals — to work against the US dollar (DX=F, DX-Y.NYB), working to devalue the currency while disrupting equity markets (^DJI, ^IXIC, ^GSPC).
Yahoo Finance explains several of the Mar-a-Lago Accord’s core concepts when Trump first announced these policy proposals in February.
Bloomberg Intelligence chief equity strategist and global director of equity strategy Gina Martin Adams comes on the Morning Brief to paint a picture of what a decelerating dollar could mean for global markets.
"Big picture: when the dollar is declining, international equities tend to outperform. We see a long-term correlation that is relatively meaningful there," she tells Seana Smith, highlighting key details of 1985’s Plaza Accord and 1987’s Louvre Accord.
"So, if we go into an environment where the dollar is decelerating, you can anticipate that the most likely outlook for global assets is for a continuation of the rotation into non-domestic stocks."
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here:
https://finance.yahoo.com/videos/series/morning-brief/
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