Morning Briefing: Markets mixed as politics dominates

Morning Briefing: Markets mixed as politics dominates

Morning Briefing: Markets mixed as politics dominates Markets mixed as politics dominates
Political issues are in focus Friday as a war of words between President Trump and Mexico threatens to turn into a trade war; and the UK prime minister meets with the US president with a future trade deal being considered.

Asian markets have reacted to the strength of the Dow in the previous session along with regional data including improved Japanese inflation indicators and Australian producer prices.

Most Asian bourses closed higher although some, including China and South Korea were closed for holidays. The Shanghai market is now closed until February 2 due to Chinese New Year.

European indexes are trending lower as matters including corporate earnings and currency fluctuations are weighed. London’s FTSE is the outlier, gaining as the British prime minister continues her visit to the US.

Wall Street and Toronto are expected to open lower. US GDP and durable goods orders data are due.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 20,100.91 (+0.16 per cent) +0.84 per cent +24.33 per cent
TSX Composite 15,615.52 (-0.18 per cent) +1.87 per cent +26.16 per cent
 
Europe (at 5.00am ET)
UK FTSE 7,159.60 (-0.03 per cent) +1.29 per cent +19.52 per cent
German DAX 11,816.02 (+0.28 per cent) +3.00 per cent +19.59 per cent
 
Asia (at close)
China CSI 300 3,387.96 (+0.36 per cent) +2.16 per cent +15.62 per cent
Japan Nikkei 19,467.40 (+0.34 per cent) +0.33 per cent +13.42 per cent
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
55.60
(-1.14 per cent)
53.30
(-0.89 per cent)
1183.70
(-0.51 per cent)
U$0.7625
 
Aus. Dollar
U$0.7531
 
Trump border tax could have wide-reaching impact
President Trump’s talk of border taxes may have wider implications than his current target of Mexico. A report suggests that Asian exports could be hit by up to 4 per cent with the region’s growth rate losing a 0.5 percentage point.

Credit Suisse’ outlook suggests that the Philippines and China could be worst affected as they export goods such as electronics that can easily be made by US companies.

However, Bloomberg reports that US consumers would likely end up paying higher prices for many goods due to the potentially increased cost of importing components.
 

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