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Markets Update , Jan 20

 

 

 

 

  • S&P Futures, Dollar Rise As World Awaits Trump Inauguration Speech
  • Global Stock Markets mixed on Trump Day

Global shares were mixed, equity futures, the dollar and crude rose as investors focused their attention on today’s inauguration of Donald Trump as U.S. president.

The heavy cloud of uncertainties over priorities will start to be lifted.

U.S. futures climbed with the dollar and Treasuries fell as investors await the start of Donald Trump’s presidency.

The Stoxx Europe 600 Index was poised for its worst week since early December while the pound slid after a report showed U.K. retail sales fell at the fastest pace in almost five years last month. Gold headed for a fourth weekly advance.

 

The so called Trump effect that lifted the US stock markets on remarks of increasing spending on infrastructures, tax cuts ans higher push on job creation,propelled the Dow Jones index  towards the all time highs of nearly 20K, is now on hold and awaiting clarification about the next steps the new Trump administration will follow.

Despite last night’s Yellen speech which was more dovish than her remarks just 24 hours earlier, and which suggested that the US economy is “not overheating”, the dollar managed to rebound from overnight losses and was trading 0.2% higher this morning.

 

The early gains came after China reported its first economic expansion in 2 years (conveniently with president Xi in Davos) with GDP rising to 6.8% after quarters of decline.

However for the year, China’s GDP growth declined to the slowest pace in 26 years, despite a record debt load and record weak Yuan.

Rallies in the dollar and equities are easing this week before Trump is sworn in as the 45th American president, with investors growing anxious for indications the administration will follow through on pro-growth campaign promises. Billionaire investor George Soros said the euphoria among stock investors since Trump’s victory will end as uncertainty takes over. The Dow Jones Industrial Average has churned in its tightest range ever over the past month.

Market Snapshot

S&P 500 futures up 0.2% to 2267
Stoxx 600 down 0.1% to 362
FTSE 100 down less than 0.1% to 7205
DAX down less than 0.1% to 11595
German 10Yr yield up 2bps to 0.4%
Italian 10Yr yield up 3bps to 2.02%
Spanish 10Yr yield up 2bps to 1.5%
S&P GSCI Index up 0.5% to 396.9
MSCI Asia Pacific down 0.1% to 140
Nikkei 225 up 0.3% to 19138
Hang Seng down 0.7% to 22886
Shanghai Composite up 0.7% to 3123
S&P/ASX 200 down 0.7% to 5655
US 10-yr yield up 3bps to 2.5%
Dollar Index up 0.16% to 101.31
WTI Crude futures up 1.2% to $51.98
Brent Futures up 1.2% to $54.79
Gold spot down 0.3% to $1,201
Silver spot down 0.9% to $16.87

gmm-20-jan

 

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