The stock market looks likely to open the week with on a soft note following the US lead and as investors respond to the US immigration policy

Judging by the reaction of safe haven markets like gold and the Japanese Yen in early trade, investors have reacted to President Trump’s Immigration order although the moves are relatively limited at this stage.

Gold’s rally this morning is, however, beginning to confirm a rejection of the 38.2% Fibonacci retracement of the latest major rally in gold and could see a short term rally get under way.

The new US immigration policy does contribute to background concerns about the potential for escalating tensions and scope for retaliation on travel and trade policy. However, from a market perspective, the policy is not at this stage likely to have any material financial or commercial impact as it currently stands.

While markets will be on alert given the amount of political noise currently being generated on trade policy and international relations, the reporting season remains the primary driver of valuations at the moment. The US quarterly reporting season continues to support valuations while investors are now in wait and see mode for the local half yearly reports due over coming weeks.

Newcrest mining has followed the recent performance of the major mining companies, with a solid production report this morning which leaves it on track to achieve production guidance for the current financial year. This includes Newcrest’s former problem child, the Lihir mine in New Guinea reaching its annualised target.