Not wishing to turn this into a political debate but. The US is the dominant power and Trump as leader has a massive impact on markets. Trump is the master bluffer. North Korea we will blast you off the planet, force like the world has never seen. Fat boy thinks gee maybe this guy is mad enough to do it. Markets panic then settle.
Trade NAFTA build a wall keep out you baddies . Canada and Mexico stall, OK we will tear it up and walk away. Ok lets talk
China trade. For thirty years China has played the West for suckers. Shake hands, sign a deal and just keep on manipulating your currency, goods , imports and China first. Massive tariffs to punish you, yeah well we will impose tariffs too, markets spin and media in frenzy end of the free world blah, blah. The game is now we talk, scared you into coming to table and expect a new hand shake deal and breakthrough in coming months. As traders we just play the game still money to be made and in one sense this market is throwing up opportunities with short sharp swings.
My favourite line in all this. Early in year a Russian diplomat was quoted. We do not know what Trump is going to do next. that is exactly what you want your enemies to think.