Morning Briefing: Markets weak ahead of ECB, Trump

Morning Briefing: Markets weak ahead of ECB, Trump

Morning Briefing: Markets weak ahead of ECB, Trump Markets weak ahead of ECB, Trump
World equity indexes are subdued Thursday following a weaker handover from Wall Street and with Donald Trump and the ECB in focus.

In Asia, Tokyo once again bucked the trend as a weaker yen helped exporters. Shanghai and Seoul managed smaller gains while Hong Kong and Sydney closed lower.

European markets are awaiting the latest interest rate decision and press conference from the region’s central bank. Interest rates are expected to be held at zero but the press conference may provide more interesting points especially as the bloc eyes Brexit.

Wall Street and Toronto are expected to open lower. Data on Canadian international securities transactions and manufacturing shipments is due. US housing and jobs data will also be released.
 
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North America (previous session)
US Dow Jones 19,804.72 (-0.11 per cent) -0.19 per cent +23.87 per cent
TSX Composite 15,397.85 (-0.28 per cent) +0.84 per cent +28.29 per cent
 
Europe (at 5.00am ET)
UK FTSE 7,203.06 (-0.61 per cent) +2.65 per cent +22.57 per cent
German DAX 11,590.33 (-0.08 per cent) +1.43 per cent +19.93 per cent
 
Asia (at close)
China CSI 300 3,329.29 (-0.30 per cent) +0.01 per cent +3.29 per cent
Japan Nikkei 19,072.25 (+0.94 per cent) -1.65 per cent +11.87 per cent
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
54.29
(+0.69 per cent)
51.38
(+0.59 per cent)
1202.90
(-0.76 per cent)
U$0.7535
 
Aus. Dollar
U$0.7559

 
Manufacturers accept Trump challenge
The challenge of a US presidency which has strong protectionist policies has been one of the key topics at this week’s World Economics Forum in Davos.

Chief executives at the conference have told Reuters that they must adapt in order to avoid punitive measures from the incoming US administration.

"There is no doubt we need to adapt," Carlos Ghosn, chief executive of Renault-Nissan, told Reuters. "All carmakers have to revise their strategy as a function of what is coming."

The challenge will be controlling costs while adapting to a more national-based supply chain but this is weighed against the potential for lower taxes and regulation for those operating within the US.