Morning Briefing: Trump speech in focus for markets

Morning Briefing: Trump speech in focus for markets

Morning Briefing: Trump speech in focus for markets Trump speech in focus for markets
World markets are awaiting a key speech from President Trump to the US Congress Tuesday; investors are hoping for a clearer picture of the administration’s plans for tax and regulation for US corporations.

Asian markets closed mixed with Shanghai and Seoul leading gains while Tokyo’s gain was curtailed by a rising yen. Sydney closed lower amid mixed data. Indian GDP data is due and could see a slowing of the economy’s growth, although the 6 per cent expected rate is still far higher than many.

European markets are essentially flat ahead of the Trump speech and with mixed corporate earnings.

Commodities are steady so far.

Wall Street and Toronto are expected to open lower. US GDP and other data is due. Canadian industrial and raw product price data is due.
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North America (previous session)
US Dow Jones 20,837.44 (+0.08 per cent) +4.90 per cent +26.16 per cent
TSX Composite 15,463.51 (-0.45 per cent) +0.50 per cent +20.24 per cent

Europe (at 5.00am ET)
UK FTSE 7,249.76 (-0.04 per cent) +2.12 per cent +18.91 per cent
German DAX 11,803.38 (-0.16 per cent) +2.32 per cent +24.31 per cent

Asia (at close)
China CSI 300 3,452.81 (+0.19 per cent) +1.91 per cent +19.99 per cent
Japan Nikkei 19,118.99 (+0.06 per cent) +0.41 per cent +19.29 per cent

Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
55.96
(+0.05 per cent)
54.02
(-0.06 per cent)
1253.90
(-0.39 per cent)
U$0.7589

Aus. Dollar
U$0.7681

Credit ratings still well below pre-crisis level
The proportion of credit ratings of A- or higher for sovereigns, corporates and banks globally remains well below the level before the financial crisis.

A report from Fitch Ratings reveals that its portfolio shows a decline which could continue in the next couple of years due to lower levels of positive outlooks.

The sovereign portfolio shows its lowest ever level of AAA-rated nations, down 10 per cent to the end of 2016 and the level of A to AAA categories is 36 per cent; a decade ago it was 48 per cent.

For financial institutions, 53 per cent were in the A to AAA categories in 2006 but by the end of 2016 that figure was 39 per cent. Fitch says that despite that, many institutions credit profiles have strengthened due to larger capital buffers.

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