Trump on tour [Video]
|The Day So Far…
After US stocks closed near record highs last night the Asia-Pac region followed suit with the Nikkei 225 at its highest level in 25-years and ASX 200 at levels not seen in roughly a decade. Filtering that through to this morning and despite the positive open sentiment has gradually waned as the morning has progressed. Fresh news has been relatively light with Trump being diplomatic for now and the strongest Eurozone retail sales in two-years having little impact.
Many in the market are still looking at the energy complex following the sharp move higher yesterday. What has been interesting here is that the rise is not just down to the developments in Saudi Arabia at the weekend but a combination of fundamentals that have accumulative since the beginning of September. These themes range from Iraq/Kurish tensions to Nigeria now stating that they would take part in implementing a production cap as part of a push for an extension of the OPEC, non-OPEC deal through to the end of 2018. Now we have firmly breached the $55 handle, and pushed to the highest level in 2-years, further upside in WTI can not be discounted and with little in the way of technically resistance it seems more a matter of when not if the price hits that next psychologically marker above.
The Day Ahead…
Looking ahead the scheduled calendar is relatively quiet but there are some on-going events that maybe worth monitoring. Firstly, Donald Trump is in South Korea today before he sets off for Beijing tomorrow. As such, monitoring his tweets and ad-hoc press conferences while on tour in the far-East may have some influence given tensions on both North Korea and trade relationships. On the speaker slate ECB’s Lautenschlager is due to participant in a panel discussion at 1430GMT and Fed Chair Yellen gives remarks at a award ceremony later this evening at 1930GMT. We are not anticipating much from either event.
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