Trump Skips Stimulus, Takes on Pharma; US Markets Drop

11 January 2017 (Update: 12:17 PM EST)

A short press conference where president elect Donald Trump bickered with and scolded some journalists, threatened pharmaceutical companies and did not say anything about his earlier promised stimulus.

Disappointing for markets and U.S. stocks  are now once again diving back towards negative zone. It will be very interesting to see the closing levels in U.S. markets today.

Latest:

“Trump volatility” hitting U.S. stocks. Major indexes and the Dollar index swinging from red to red to green again withing minutes.

Dow Jones now up 80 points after dropping in the red.

Earlier:

-U.S. markets have quickly lost their earlier gains after Trump made no mention of any fiscal stimulus in the opening minutes of his first press conference as president elect.

All major U.S. indexes have turned negative. 

Dow Jones falls 117 points from day’s high level.

Earlier:

Donald Trump has started his first press conference as president elect of the U.S. and spent a total of 3 minutes talking about economy. He talked about car manufacturers bringing back their plants on home soil, then he threatened pharma companies to be next and then he talked about fighter jets. That’s all.

After that, it turned to politics, Russia, Hillary Clinton etc etc.

U.S. indexes and other markets have tumbled after that.

Earlier (8:54 AM EST)

U.S. markets will be waiting for Donald Trump’s first press conference today after his 2016 presidential election win. It will take place at 11 AM EST in New York, at Trump Tower.

Stock markets will be looking for Trump’s comments about his fiscal stimulus plans and economic restructuring ideas; if he gets past questions about his so called Russian connections.

Politics may dominate Trump’s press conference and markets will be disappointed if he does not get to talk about his fiscal plan. At the same time, if Trump reiterates his plans to boost infrastructure and other economic spending, then global markets will get a shot inn the arm, not only U.S. markets.

The trend in U.S. markets may remain subdued and choppy before Trump’s comments. And after that, we may see a highly volatile market reaction based on what he says- or does not says.

European markets are swinging between high and low levels. FTSE 100 (U.K.) continues to gain as sterling drops against dollar but DAX (Germany) is still finding it difficult to jump above 11,620 mark.

For Dow Jones in U.S. markets, Trump comments may bring a jump to 20,000. Or, further decline. Both directions are possible as markets have build high hopes from Trump stimulus. Time will tell whether those hopes will come true, but for markets, it will be enough for Trump to say something positive about his stimulus plans.

So wait till that event happens. Then trade with the dominating trend.

Good luck, enjoy the session!

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