Oil companies truly are the rockstars of the day
Trump the peacemaker! The moment he lands in South Korea the US president makes plea to North Korea regime to reach a deal on its nuclear program.
Contrary to most days when North Korea makes the news this time the greenback shot up. Actually, it’s the highest it’s ever been the past 4 months. The Trump train’s winning with foreign policy!
In the meantime, Asian stocks went up with oil companies being the main drivers. Investors really liked them oil prices and believe they will push up their bottom line. This spilt slightly on European shares.
Meanwhile bank stocks trimmed dem gains lightly after Mario Draghi said the problem of bad loans still isn’t solved yet. He’s to speak at a conference at Frankfurt.
Taxes is what everyone thinks right now
Big developments – stocks retreated, the greenback gained ground, so did Treasuries. The reason – investors turned their attention to fiscal policy. The House of representatives is expected to get the plan done this week.
It is expected that they will announce their bill on Thursday. After that it needs to be ratified by the Senate. Speculation is that there will be big differences there.
The S&P gave ground with the retreat being lead by financials. Stoxx Europe 600 dropped, erased an earlier advance, but still remained at an all time high.
Oddly enough, despite the waiting game that has engulfed markets gold sank 0.4%. Industrial metals pared some of yesterday’s gains.