Trump set to appear at Davos forum

European indices are kicking off proceedings on a more uncertain tone this morning, with the likes of the FTSE 100 and DAX pausing after the record highs seen earlier in the week. Yesterday’s AI optimism helped lift heavy hitters Nvidia, Microsoft, Palantir, and Oracle by 4-7%, as markets weighed up the repercussions of the $500 billion Stargate plan. However, next week’s impending earnings from four of the seven Mag7 names will likely see markets question valuations after recent gains.

UK oil & gas names remain under pressure as crude oil continues to weaken. US crude has dropped below $75 in early trade, coming off the back of yesterday’s lacklustre API inventories data that saw the first rise in six-weeks. With Donald Trump planning to incentivise US oil & gas producers into a fresh period of rampant production, markets will hope that this provides enough weakness to drive inflation lower.

Today looks set to provide a continued focus on events in Davos, with the business channels dominated by coverage around the World Economic Forum. However, things look set to get interesting as this gathering of pro-globalisation leaders prepare to hear from Donald Trump, who makes a virtual appearance at the summit later today. Coming off the back of the decision to leave the WHO and Paris Accord, this appearance is likely to lay out a relatively combative America First approach that involves a raft of tariffs aimed at redressing the balance of trade back in favour of the US.