Trump and Washington Continue to Create Tension for Investors

Global equities have turned cautious the past day after record performances on Monday. Republicans won big congressional elections yesterday and Washington politics continue to have an impact on investors. Crude Oil Inventories will be released today into a bearish market.

Wall Street Set for Cautious Day

Wall Street will open trading today with slight declines forecasted via the Future Markets for equities. Yesterday, provided a losing day for the major Indexes, after records were broken on Monday by the Dow Jones and S&P. Existing Homes Sales data will come from the States today, and tomorrow weekly Unemployment Claims will be issued. However, the real players seemingly in the U.S markets continue to be the strong rhetoric from the Federal Reserve which is signaling another interest rate hike will be delivered. Also, politics continue to get plenty of attention in the States. While the White House and Donald Trump continue to stir the pot, Republicans did get a big election win via a Congressional vote in Georgia yesterday.

Better Data from Japan

Asian markets saw the Nikkei and Topix Indexes put in losses today, but the Shanghai Shenzhen composite put in solid gains. Mixed results on the major equity exchanges have become standard from Asia the past couple of weeks as divergent trading has become evident. However, except for the All Ordinaries Index from Australia – which is down over one percent the past month, the major Indexes from Asia have put in stellar climbs like their American counterparts. The All Industries Activity reading from Japan turned in good result this morning, reversing recent lackluster data from the nation. The Yen has been slightly stronger against the U.S Dollar and the 111.00 level remains important.

Theresa May Problems Troubling

The Public Sector Borrowing statistics from the U.K have come in with a better number this morning. The Pound however has remained under a vast amount of pressure and the 1.26 level against the U.S Dollar remains a focal point. Prime Minister Theresa May has not been able to create better clarity for investors. Her leadership remains in question, and this along with Bank of England Governor Carney’s comments yesterday about no interest rate hike on the horizon as created some problems for the Pound. European equities have opened with losses continuing yesterday’s cautious market action.           

Precious Metal Volatility Likely

Gold has seen some stability this morning with buyers providing a bit of support. The 1245.00 U.S Dollars an ounce price is a focal point. Volatility in commodities the past few days has been widespread and traders need to make sure they have their risk management in order.

Yaron Mazor is a senior analyst at SuperTraderTV.

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