Market Snapshot – Markets Await Donald Trump’s Speech, GDP Miss Expectations

Trump’s Speech in Focus

It’s going to be a long day for the markets, waiting on the U.S president to address Congress, with Trump scheduled to speak at 9pm GMT. You can watch Donald Trump’s speech on FXEmpire website.

Traders and investors will be carefully listening to Trump’s speech to get details regarding Trump’s policies plans. The focus is on tax reforms, healthcare sector, markets deregulation and fiscal stimulus policy. The result of a disappointing speech by Trump can add volatility and a bearish sentiment into the markets.

Ahead of his speech in front of the congress, Trump interviewed today in Fox news:

US Q4 GDP Left Unrevised, Below Analysts Expectations

US Q4 Growth(second estimation) left unrevised, missing analysts expectations. QoQ GDP showed increase of 1.9%, below expectations of 2.1% and lower than previous quarter growth of 3.5%.

The GDP Price Index showed growth of 2.0% compare to economists forecasts of 2.2%.

Oil Prices Fall Ahead of API Report

Oil futures are trading lower shortly before the cash market opening. The market remains range bound. Bullish traders have been supporting the market on breaks because they believe that total compliance with OPEC’s plan to cut output will eventually trim the excess supply. At the same time, any rallies have been capped by concerns over rising U.S. production.

Crude oil is trading at $53.46 down 1.15%, Brent oil is trading at $55.80, down 1.12%.

Global Stocks in Hold Before Trump Speech

European stock market kicked off the day in positive territory this morning, before being pegged back as the markets look ahead to Trump’s address to Congress at 9pm GMT, macroeconomic data likely to be brushed aside through the European session.

The DAX is the worst performer on the day, falling as much as 0.31% before recovering to a 0.02% loss, the FTSE 100 feeling the negative sentiment towards metals, following the uptick in the probability of a rate hike in March. Trump could reverse the negative sentiment towards metals, but he’ll need to be do more than just talk the talk on infrastructure spending.