With China growing increasingly nervous about the prospect of a trade war with the US, the nation's official mouthpiece People's Daily warned that a trade war between China and the United States would harm both countries, reflecting concerns over Trump's stated protectionist, anti-China stance.
US equity futures were flat, European stocks rose and Asia was mixed after the dollar posted a modest rebound overnight despite Mnuchin's "strong dollar" comments, while oil was flat and gold fell, as investors focused on President Donald Trump’s plans to boost growth. The pound fell after a U.K. court ruled that Parliament must vote on triggering Brexit.
While US stocks closed near session, and all time highs on Friday, the first green close on inauguration day in over 50 years, Monday has seen a modest case of buyer's remorse, with European stocks sliding, Asian shares mixed and U.S.
With Trump now officially US president amid concerns that a "sell the inauguration" sentiment may emerge at any moment, it was an appropriate moment for Credit Suisse analyst Andrew Garthwaite to release his report listing the 10 possible ways in which the bank's central views (and often the consensus) could be surprised. Below the bank highlights the factors its thinks could surprise adversely in 2017, together with its core views.
The quick summary:
Global shares were mixed, equity futures, the dollar and crude rose as investors focused their attention on today's inauguration of Donald Trump as U.S. president. While the early tone is well bid, some traders anticipate a volatile session, with speculation that a bout of "sell the inauguration" could cap the aging Trump rally, which started with his inauguration.