Sudden Weakness In The Dollar Can Help US Gains

Sudden Weakness In The Dollar Can Help US Gains

New York, Correspondent : Investors and one stock market may be at least less worry in the results of the coming period: a sudden weakness of the dollar.

The dollar has suffered, that a strong recovery after the US elections November 8 hit profits for many US multinationals in the fourth quarter, a sharp decline since the beginning of the year.

Along with comments suggesting that Trump administration prefers a weak currency, which can move the image in the current quarter.

In the fourth quarter, even with the brake on the dollar, far exceeding Wall Street expectations and help reduce the uncertainties facing investors, including the new president of the United States policies. The S & P 500 closed with a slight rise in the week.

With an increase of more than half of the companies in the growth of S & P 500 profits from year to year in the fourth quarter and is now estimated at 8.0%, compared with 6.1% in early January, the strongest way since the third quarter of 2014, according to Thomson Reuters. Analysts expect that the increase in profits for the first quarter of 11.4%.

Non-farm payrolls in the United States experienced the largest increase in four months in January.

The dollar index, on January 31, the worst start to a year three decades, with a drop of 2.6 percent in January after rising 7.1 percent in the fourth quarter of 2016.

Comments this week by President Donald Trump economist and senior adviser Some suggested that the administration is willing to give up two "strong dollar" policy advocated by his predecessors.

A strong dollar is a concern for equity investors, as is a multinational US corporate earnings in the foreign exchange earning less in dollars. Nearly half of the sales of S & P 500 come from overseas, according to the index S & P Dow Jones.

Many of the leaders of American companies quoted and the strength of the dollar negative in the fourth quarter reports, as well as worry about the impact on the results of 2017.

Among them, Apple gave a cautious outlook for the current quarter, which was due primarily to the strength of the dollar, despite its location in the optimism of the results of the fourth quarter.

Said Luca MAESTRI Reuters, "For a company like ours, where we carry out nearly two thirds of our business in the United States, a strong dollar and displays headwind more than 2 percent growth."

Other companies mentioned fiscal fourth quarter 2017 or obstacles include Procter & Gamble, the company Mead Johnson, 3M Company and PPG Industries.

Procter & Gamble said it expects sales of foreign currency and looting brand alongside a small sales decline of 2.3 percentage points combined by 2017 growth.

Some strategists say that the dollar is still likely to be stronger, not weaker than this year, especially in light of expectations of higher interest rates this year, but profits should continue to benefit from an improving economy.

"We must get more than economic growth enough if you are more than offset the increase in the dollar value of the company, with" said Sameer Samana, global quantitative strategist at investment and Wells Fargo Institute, which provides that the dollar index to rise 7 percent at the end year.