European Markets Are Cautious before US GDP Data
After a strong pullback on Thursday, the United Kingdom’s FTSE 100 continued to weaken and fell in the morning session on April 28.
After gaining for three consecutive trading days, China’s Shanghai Composite Index lost momentum and closed almost flat on April 28.
After struggling for four consecutive trading days to stabilize above 99, the US Dollar Index is weaker in the early hours on April 28.
After trading flat on Wednesday, the S&P 500 also closed flat on April 27 amid a string of first quarter corporate earnings.
Argentina’s inflation has been surging for a couple of years, spiking to around 40.0% in 2016 compared to 10.0% between 2007 and 2009.
The recent rally in Argentina’s Merval Index (ARGT) reflects improved access to Argentina’s markets with a host of reforms adopted by President Mauricio Macri.
With the new government under the leadership of President Mauricio Macri, Argentina seems to be doing much better.
The economic situation in Argentina was in disarray with high inflation, fiscal deficit, and a host of other issues. Then a new president was elected in December 2015.
According to Fink, the Trump administration should also focus on training and developing human resources to have a greater impact on expected reforms.
Fink believes that with a Le Pen win, the possibility of a French referendum to exit the European Union would be much more likely than anticipated.
Uncertainty about the implementation of reforms by the Trump administration seems to be overshadowing the markets.
The Trump administration has been trying to repatriate the $2.6 trillion in overseas profits held abroad by US companies to avoid taxes.
In an April 21, 2017, interview on Wall Street Week, BlackRock CEO Larry Fink shared his views on US economic growth, tax reform, and job creation.
The lack of details provided by Trump’s Administration in its new tax cut plan disappointed the market and dented the sentiment.
Japan’s Nikkei index traded lower in the early hours and didn’t recover its losses. The market is waiting for the Bank of Japan’s policy meeting to end.
After rising higher and pulling back on Wednesday, the US dollar is weaker in the early hours on April 27. The US dollar pared its profits on Wednesday.
After gaining for two consecutive trading days, the S&P 500 rose higher on Wednesday. However, it pulled back and closed almost flat.
Demand for fixed income securities will likely be subdued because of excess supply this week, which would mean additional support for bond yields.
The global reserve currency, the US dollar (UUP), has been stuck in a narrow range for the last few weeks. It formed temporary bottom near 98.30.
Markets were relieved as Emmanuel Macron, the independent centrist, gained the lead in the first round of France’s presidential election.