Risk-On Trading Attitudes Wednesday After Upbeat Trump Speech To US Congress

‘Currently, when we ship products out of America, many other countries make us pay very high tariffs and taxes, but when foreign companies ship their products into America, we charge them nearly nothing, ‘ he said.

The tycoon pledged $1.0 trillion in public-private infrastructure spending and “massive” tax cuts for the middle class, but he did not say how any of it would be paid for.

Fillon’s stance “raises the likelihood of a period of unstable government in France after this spring’s elections”, said Jessica Hinds at Capital Economics.

“There is now a good chance that it won’t happen until early next year”.

The dollar temporarily sank below ¥112 in NY trading Tuesday, weighed down by falls in USA equities and long-term Treasury yields.

Markets will be keenly focussed on each and every detail of the Trump’s policy, in addition to the development in the European elections.

Reaction in Asian stock markets to Trump’s speech was largely muted, with the MSCI’s broadest index of Asia-Pacific shares outside Japan down about 0.2 percent.

“There’s significant risk for a potential delay or a watering down of the campaign promises”.

The dollar initially fell as Trump spoke, as investors were disappointed there were no details on policies. The US economic growth shows the moderate expansion and growth under Trump’s administration, coupled with the fourth quarter sluggish growth in line with last month’s estimate.

The dollar gained 0.1 percent to 20.116 pesos. But the five-year note climbed five basis points to 1.90% at 4 p.m. from 1.85% around noon.

Meanwhile, Dallas Fed President Robert Kaplan said in an interview with CNBC that a rate hike would be best “sooner rather than later”.

The Nikkei index opened higher with further support in early trading and a move above the 19,300 level.

Speaking on CNN overnight, Dudley – deemed a close ally of Janet Yellen – added that “The case for monetary policy tightening has become a lot more compelling”. Other key reports out of the USA include personal spending and personal income figures. “Overall, consumers expect the economy to continue expanding in the months ahead”, said Lynn Franco, Director of Economic Indicators at The Conference Board.

Oil futures dipped as OPEC-led output cuts were offset by concerns about increasing USA crude production.

In commodities, Brent crude was down 0.04 percent at $55.97 per barrel while U.S. West Texas Intermediate settled up 0.1 percent at $54.05 per barrel as a global supply glut appeared to ease.

Spot Gold fell 0.4 percent to $1,248.31 an ounce.

Please Wait while comments are loading.