This morning, markets are dominated by Donald Trump’s immigration policies. The US president has banned immigration from seven predominantly Muslim countries. The ramifications of the halt, coupled with data that shows a slow-down in US growth, has tampered the Trump rally that was seen last week.
The travel bans have troubled markets as the effect of Trump’s geopolitical stance as well as his international trade risks come into focus for investors. A judge ordered a temporary halt part of Trump’s order, which allows entrance for those who already hold U.S. visa.
The dollar has weakened along with US equities. Economic data shows that the US economy grew 1.6% in 2016, the weakest growth in five years. The disappointing data should affect the Federal reserve’s decision to increase interest rates.
- S&P 500 is down 0.26%, trading at $2283.25
- DJ 30 didn’t hold on to $20000, trading at $19970
- Nasdaq 100 is down 0.33%, trading at $5147
The yen enjoyed a boost in demand on Monday thanks to the weaker dollar. USDJPY is currently trading at ¥114.82. The Bank of Japan will announce its monetary policy decision on Tuesday. The MSCI is lower, slumping to 357.40, down 0.03%.
The European economy has been hit by Trump’s protectionist values, equities have sunk across the board. FTSE 100 is down 0.8%, trading at £7055.50. DJ Euro Stoxx 50 is lagging at €3267, down 0.9%. The euro is stuck in a sideward trend, the EURUSD is now trading at $1.069.
Crude has also shed some gains, down 0.54% trading at $52.83. Even gold is down, at $1190.06
One of the few bullish bets in the sea of red is Vodafone. The company stated that it was in the middle of talks with Idea Cellular, an Indian-based competitor, and are discussing a possible merge of the two market leaders. The merge would help both organisations to cope with industry price wars, which are currently dominating the mobile phone industry.
Vodafone is up 3.13%, trading at £199.05
13:00 (GMT) German consumer price inflation
13:30 (GMT) US producer prices and personal income
15:00 (GMT) US pending home sales