The optimism on Wall Street seems to be running thin on the ground, despite reports emerging that Donald Trump is considering pushing back the March 2nd tariff increases on Chinese imports by as much as two months if this week’s talks continue to go well. This news has helped reverse yesterday’s post-market sell-off for US index futures, but given the significance of the call, this may have the potential to deliver further gains in the near term.
Yesterday’s budget deficit data may have flagged some concerns over the too-generous tax breaks that have been given to US businesses, although with no suggestion that fiscal policy will need to be reversed quickly, the market hasn’t seen any real need to panic here. December Retail Sales will be in focus before the opening bell as these could illustrate a dip into negative territory, again highlighting how the feel-good effect of previous tax breaks on consumers is now running thin. With fuel prices driving inflation down, discretionary spending ought to be rising, but if consumers are seeing storm clouds ahead, again this could be case for a degree of profit taking from the recent bumper gains for equities.
Ahead of the open we’re calling the DOW up 32 at 25575 and the S&P up 4 at 2757.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Recommended Content
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.