Trump continues to distract markets

Yesterday’s markets

23rd November 2016

  • AUD RBA Assist Gov Kent Speaks
  • GBP Public Sector Net Borrowing: 4.3B
  • CAD Core Retail Sales m/m: 0.0%
  • CAD Retail Sales m/m: 0.6%
  • USD Existing Home Sales: 5.60M

Yesterday, the economic calendar was relatively light. President-elect Donald Trump is continuing to create headlines and give markets something to talk about. Donald Trump posted a video on YouTube outlining some of his policy goals for the start of his Presidency. One of which was to completely withdraw the US from the Trans-Pacific Partnership, a partnership that took nearly 7 years to complete. The agreement includes the pacific rim countries such as Australia, Japan and Canada, however notably not China. The announcement has caused a slight bit of havoc in Washington over the last couple of days.

Yesterday’s market movement was relatively stable, Sterling ticked slightly lower across the board reversing some of yesterday’s gains after Theresa May hinted that the Government will seek a transitional Brexit deal when negotiations with the EU begins. The comment helped to settle investors nerves of a hard Brexit.

Today’s markets

22nd November 2016

  • EUR French Flash Manufacturing PMI
  • EUR French Flash Services PMI
  • GBP Autumn Forecast Statement
  • USD Core Durable Goods Orders m/m
  • USD Unemployment Claims

France and Germany release manufacturing and services PMI figures this morning, before the main Euro PMI’s for these sectors are posted. With France and Germany’s sectors both set to show slight increases, it is also expected to show through in the Eurozone’s main gauges. Both sectors are due to register around the 53.2 mark and remain in expansion territory. Today, the UK provide and set out the economic outlook and budget for the coming year in the Autumn Forecast Statement. Sterling could see some volatility as this is announced depending on the governments financial objectives. The US later in the afternoon release their durable goods orders for the month, which is anticipated to bounce to a bullish 1.2%. Then the FOMC minutes are released where markets will look for further clues from the meeting as to when the FOMC members are looking to raise rates.