Afternoon Market Update – 12/01/2017 – by Jaz Singh
January 12, 2017Following Trump’s disappointing press conference we have seen the dollar experience its biggest daily decline since November. Stocks also headed lower as the President-elect outlined plans that will force pharmaceutical and biotech companies to bid for government contracts. Trump left market participants with little detail regarding his fiscal stimulus plans, the cornerstone of the post-election rally. Of its main counterparts, the euro was one of the bigger winners versus the dollar, strengthening over 0.5 percent this session. The cable pair has reversed strongly after breaching the $1.21 level to the downside yesterday; we currently trade at the $1.23 handle. The selloff seen in the equity space late yesterday has continued, with the FTSE 100 looking to end its record run of gains. S&P500 futures are in the red as we expect declines at the US cash open. The picture in the commodity complex remains strong with copper and zinc adding over 2 percent. We’ve also seen gold rise above the $1200 level off the back of dollar weakness. Looking ahead we have jobs and price index data from the US on the calendar along with Fed and FOMC speakers.
