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Trump means Trump

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The main message from the US president-elect's press conference for investors is probably "Trump means Trump". The conference and policy signals were delivered in the style of candidate Trump. The idea that President Trump may differ from candidate Trump looks a little less likely.
  • Investors have been inclined to downplay the risk of candidate Trump's trade protectionism being implemented by the new administration. That view may need to be revised in view of the style of the press conference. The US dollar weakened in Asian trade as investors adopt a wait-and-see stance.
  • European industrial production data really is not that interesting to investors (or, indeed, to anyone else). However, French final consumer price inflation for December may be worth a second glance. The initial data surprised by rising less than expected, in contrast to economies like Germany. Any revisions may catch investor attention.
  • US confirmation hearings continue, with "Russia" acting as a trigger word for media interest. Import price data is not likely to excite attention now, but with the prospect of American consumers being taxed via tariffs in the future, this is a number that markets may have to consider in the future.