US equities are edging higher this morning. The rally comes after the S&P 500 moved 0.2% higher in the afternoon on Friday.
The first presidential address before a joint session of Congress will commence early Wednesday morning. Trump is expected to reveal details on his widely-anticipated tax code as well as health-care reform and infrastructure spending. Investors remain bullish this morning, hopeful that Trump will deliver on his campaign promises, which included lower taxes, an alternative to Obamacare and increased government expenditure on public infrastructure.
Janet Yellen will also be speaking this week. The minutes of the latest Federal Reserve were released last week. Fed members expressed that there should be an increase in borrowing costs ‘’fairly soon’’. Investors will be looking out for any hints given by the Fed chair on the date of the next rate hike. Currently, the liklihood of a march rate hike resides at 54%. Markets, for now, are betting that the rate increase will be in June.
While equities reached record-highs on Friday’s close, they did spend most of the trading day in negative terrain. This indicates that there is mounting caution amongst investors and may be a sign of a slow-down in reflation trade.
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DJ 30 is inching up 0.03%, at $20784.00
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S&P 500 is grasping onto gains, up 0.04%, at $2365.00
Over in Europe, equities are slipping, led by fears of the looming elections. At the forefront of those fears are the French elections. Last week, National Front leader Marine Le Pen climbed higher in the polls. The news sent the CAC 40 lower, now trading down 0.4% at €4842.00. European equites are following the French sentiment, marching lower this morning.
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DAX 30 down 0.22%, at €11810.00
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FTSE 100 down 0.19%, at €7242.00
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Dancing to its own tune, the FTSE MIB has broken away from the heard, up almost 1% this morning.
Coming Up Today
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13:30 (GMT) Core Durable Goods Orders m/m
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16:00 (GMT) FOMC Member Kaplan Speaks