The president of the ECB, Mario Draghi, expressed clear dissent against Trump’s deregulation plan, warning that such a move is dangerous and could pave the way for a global financial crisis. He also mentioned that monetary stimulus efforts are still needed to support the EU’s economic recovery.
Gold prices surged to a three-month high of $1,232 this morning, getting closer to the immediate resistance at $1,240. USD/JPY dropped below the key support level of 112.3 and dipped further to the 111.8 area this morning. The rally in safe-haven assets shows a retracement in investors’ risk appetite amid heightening political and financial uncertainty.
Robust US non-farm payrolls and Trump’s financial deregulation move lifted Asian stocks yesterday. The Hang Seng Index rose 0.9%, backed by a strong performance in the financial sector. Insurance names were among the biggest gainers. China Life Insurance (2628 HK) and Pingan Insurance (2318 HK) jumped 7.71% and 4.6% respectively. It was said that plans were in place to allow more insurance and pension funds to enter equity markets.
Banks rallied too. Standard Chartered (2888 HK) and HSBC (5 HK) rose 2.4% and 0.75% respectively as the market suspects that Trump’s deregulation plan will bring tailwind to bank’s earnings in the future.
The Singapore listed Global Logistic Properties (GLP) soared over 5% on Monday, making it the best performing index component. The sudden rally was fuelled by news that the Chinese consortium led by Hopu Investment Management won support from GLP’s CEO and they have together submitted an offer to bid for GLP.
GLP disclosed on Friday that it received a number of non-binding proposals to be evaluated by an independent board committee. The offer prices however, have not been revealed yet. This deal, if successful will become the largest buyout deal in Asian ever.
Today investors will also watch the Reserve Bank of Australia’s interest rate decision, which is widely expected to remain unchanged at 1.5%.
Gold - Cash
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