Trump speech in focus for markets... Credit ratings still well below pre-crisis level...
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.
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.
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.
| Latest | 1 month ago | 1 year ago | |
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.
