Robust gain by U.S stock

Dow Jones Industrial Averages closed up 135.53 points (+0.65%) at 21,144.18, Nasdaq up 48.31 points (+0.78%), and S&P 500 up 18.26 points (+0.76%). DJIA made another higher high but still lower than record high 21,169.11 which is just 25 points away.

Nikkei regain 20,000

Nikkei 225 blast through 20,000 handles the fist time since 2015. The index moving higher boosted by weaker yen and positive sentiment from U.S job data.

U.S pullout from Paris agreement

President Trump made another unpopular decision to pull U.S from Paris climate agreement. The pulling out of agreement means U.S join the only two countries (Syria and Nicaragua) which reject the agreement. This decision made as Trump think the agreement disadvantage for U.S and ready to re-negotiate or enter another agreement on climate change.

Elon Musk who is in White House advisory board tweet about leaving the advisory board minutes after the decision. Though it looks like a bad decision, it might not be bad as U.S could continue to lower greenhouse gas emission without any sanction if the target not reached.

Possible influence on the market after U.S pullout of Paris agreement

In the medium-term and long-term, without any renegotiations, it looks like Coal and oil price could enjoy uptrend. Moreover, the sector which predicted to take the biggest hit is renewable energies sector. There are two giants in energies sector which sound disagreement on the President Trump decision. Exxon Mobil (NYSE: XOM) and Conoco Phillips (NYSE: COP) both think it is better for U.S to stay in the agreement where the country could influence global effort to reduce gas emissions.

For short-term, it looks like investors reacted negatively in oil and the price fell. The market took U.S exit from Paris agreement means more drilling in U.S which will push the supply up.

What to expect in the future

Exit from Paris agreement could hurt U.S commitment as the world leader, but it might open room for negotiations. However, Republican and President view also think climate change is a hoax which is troublesome. While it looks gloomy, but there is room for negotiations and climate is world concern, surely President Trump might not let this issue drag for long. Expect energy price will move in zig zag and settled for next direction after the new deal.