While comments made during Donald Trump's press conference ‎yesterday had some impact on trading, it's what he didn't say that has sent shockwaves through global markets overnight.

The press conference focused mainly on sideshow issues like how he is going to distance himself from his businesses and relations with Ru‎ssia. Comments on drug companies and pricing have sent pharmaceutical and biotech stocks around the world sharply lower.

What has rattled the most, however, was that he said nothing specific about fiscal stimulus or economic plans outside of health care, just general comments about job creation. The big rallies in the US Dollar and US st‎ocks were founded on the notion that the Trump Administration would focus on infrastructure spending, deregulation and other fiscal stimulus measures. The moves were so big that Trump had been priced to perfection lately raising the risk of disappointment.

Indications that the economy may not be the new government's only priority has rattled traders and reminded everyone that politics isn't perfect. This has sparked a big readjustment of expectations and the start of a long overdue correction in the US Dollar. ‎This has lifted the lid off other currencies sparking major rallies and or breakouts in Gold (up 1.3% and above $1,200), the Yen (USDJPY under $1.1500), EUR, CAD, GBP, AUD (all of which are up over 1.0% today) and other currencies.

Currency moves have impacted overseas indices as well. The Nikkei fell 1 1% with JPY rallying. This morning finds the FTSE flat, US index futures down 0.25% and the Dax down 0.4%.

‎Crude oil continues to bounce back from weakness earlier in the week and a successful retest of $50.00 with WTI up 1.1%. Natural Gas is up 2.2% ahead of today's inventory numbers. This can help to attract renewed interest to energy stocks and oil sensitive currencies like CAD, NOK, RUB and MXN.


Corporate News

There have been no major corporate announcements this morning. 


Economic News

China new Yuan loans        1,040B vs street 676B

Italy industrial production    3.2% vs street 2.0%
Eurozone industrial production    3.2% vs street 1.6%


Upcoming significant economic announcements include:

8:30 am EST        Canada house prices        street 0.3%

8:30 am EST        US jobless claims        street 255K

8:30 am EST        FOMC Harker, Evans, Lockhart speaking
1:45 pm EST        FOMC Kaplan speaking
7:00 pm EST        FOMC Yellen town hall


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