US stocks sold off for a second straight day, with the Dow falling farther away from 20,000 confirming its breakdown. A number of factors combined to drag on markets including a number of earnings misses in the pharma sector and elsewhere and a surprisingly big miss in the Chicago PMI report. After the close, Apple and Electronic Arts beat the street by a wide margin helping the NASDAQ to bounce back a bit. Politics also played a big role in trading, particularly in currency markets where the US Dollar Index broke down below 100.00, indicating that the post-election honeymoon for the greenback has ended as well. Traders are becoming increasingly concerned about the potential for economic and trade disruptions as the Trump team turned their sights on Germany indicating they think Germany uses its membership in the Euro to get a defacto currency devaluation. While the Germans using the Euro to gain competitive advantage to the detriment of its “partners” like Greece and Italy has long been known it’s interesting the US is now seeing the same thing externally. The Administration also indicated that the TTIP (proposed US-EU trade deal) as dead in the water, throwing it on the same scrap heap as the Trans Pacific Partnership and keeping the pressure on NAFTA partners to renegotiate. By the end of 2016 defensive havens had been totally crushed, but the return of political risk has reignited interest in gold and the Japanese Yen once again. With copper also up on the day, miners could attract attention in today’s trading. A number of other major currencies also rallied today. EUR jumped on the back of rising Eurozone inflation pressures that may put pressure on the ECB to cut back QE stimulus faster than the central bank would like. GBP also rallied as the government introduced its Brexit bill and reports suggested the triggering of Article 50 could be moved up to March 9. There remains the potential for a lot of activity in the markets over the next 24 hours particularly in the US. Manufacturing PMI reports are due from around the world, the first look at the global economy into 2017. US ADP payrolls are also out ahead of the afternoon FOMC decision. With three new voters and the central bank having raised interest rates in December, no move is expected this time. Any hints in the statement toward whether a rate hike is planned for March or not could have major ramifications for trading because it would need to move in March to be on track for four rate hikes this year. Any delay past that would be seen as less hawkish than the street has been thinking lately. Any talk around shrinking the Fed’s balance sheet could also attract attention. Corporate News Apple $3.36 vs street $3.22, sales $78.35B vs street $77.31B, guides next Q sales to $51.5-$53.5B below street $53.6B Electronic Arts $0.00 vs street ($0.13), guides March year to $2.91 above street $2.72 Economic News Significant announcements released overnight include: NZ QV house prices 13.5% vs previous 12.5% US ADP crude oil inventories US Chicago PMI 50.3 vs street 55.0 US consumer confidence 111.8 vs street 112.8 Canada Nov GDP 1.6% vs street 1.4% Canada industrial prices 0.4% vs street 0.5% Canada raw material prices 6.5% vs street 2.8% France GDP 1.1% as expected France consumer prices 1.4% vs street 1.1% vs previous 0.6% Spain consumer prices 3.0% (wow) vs street 2.3% vs previous 1.6% Germany retail sales (1.1%) vs street 0.5% vs previous 3.2% Germany unemployment change (26K) vs street (5K) Germany unemployment rate 5.9% vs street 6.0% Eurozone GDP 1.8% vs street 1.7% Eurozone consumer prices 1.8% vs street 1.5% vs previous 1.1% Eurozone core CPI 0.9% as expected Eurozone unemployment rate 9.6% vs street 9.8% Upcoming significant economic announcements include: (Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore) 8:45 am AEDT NZ employment change/quarter street 0.7% vs previous 1.4% 8:45 am AEDT NZ employment change/year street 6.1% 8:45 am AEDT NZ unemployment rate street 4.8% 8:45 am AEDT NZ average hourly earnings street 0.6% 5:20 pm EST Bank of Canada Poloz speaking 4:30 pm AEDT Australia commodity index previous 45.5% 7:00 am GMT UK Nationwide house prices street 4.3% 8:15 am EST US ADP Payrolls street 168K 10:00 am EST US construction spending street 0.2% vs previous 0.9% 10:30 am EST US DOE crude oil inventories street 3.0 mmbbls 10:30 am EST US DOE gasoline inventories street 1.5 mmbbls 2:00 pm EST US FOMC decision 0.75% no change expected Manufacturing PMI reports: 12:00 pm AEDT China official street 51.2 12:00 pm AEDT Chian non-manuf previous 54.5 9:30 am AEDT Australia previous 55.4 11:30 am AEDT Japan previous 52.8 4:00 pm AEDT India previous 49.6 9:30 am GMT UK street 55.9 8:55 am GMT Germany street 56.5 8:50 am GMT France street 53.4 8:45 am GMT Italy street 53.3 8:15 am GMT Spain street 55.0 8:00 am GMT Norway street 51.2 9:00 am GMT Greece previous 49.3 9:30 am EST Canada previous 51.8 9:45 am EST US Markit street 55.1 10:00 am EST US ISM PMI street 55.0 10:00 am EST US ISM prices paid street 65.5 10:00 am EST US ISM new orders previous 60.2 10:00 am EST US ISM employment previous 53.1