US President Donald Trump’s much-awaited speech at the Economic Club of New York on Tuesday disappointed the markets as it provided little to no new information on how the China-US talks have been faring.
Trump attacks Fed, fails to feed market curiosity on China talks
He repeated all the usual mantra on how Beijing badly needed a deal, that it has been cheating the US for decades, that he ended the unfair practices and that they would ‘soon’ finalize it but fell short of revealing any time or venue for a signing ceremony for the said deal.
His remarks steadied the dollar in international markets as he threatened even harsher tariffs if the Sino-US negotiations failed. Stocks in Asia and North America were stressed in the wake of the speech that was rhetorically heavy but light in terms of substance.
Trump essentially turned the speech into an election campaign address as he focused and exaggerated figures on the jobs created, businesses brought home from abroad, and trillion dollars-worth growth and, unsurprisingly attacked the Federal Reserve. Trump complained about how the Fed was not “playing along.”
Public impeachment hearings begin
The US President will later today be busy watching some of the first public hearings in the House impeachment inquiry against him before he hosts the Turkish President Tayyip Erdogan, much to the chagrin of the Congress.
Powell at the Congress
US Federal Reserve Chair Jerome Powell will also be the center of attention as he appears before a congressional committee today to answer lawmakers’ questions about the bank’s most recent rate cuts and the anticipated effects of trade disputes.
RBNZ surprises investors
New Zealand’s central bank took investors by surprise as it decided on Wednesday to keep its interest rates on hold, at an all-time low of 1%.
The Reserve Bank of New Zealand said in a statement that it felt no urgency to ease its monetary policy further. The kiwi dollar shot up sharply high over 1 percent. The bank, however, left the door open for easing and vowed to act if needed as some expect the chances of a cut early next year.
German and Japanese GDP data in focus
Later during the day, investors will be hearing from German and Japan third-quarter gross domestic product figures. Both countries’ economies have been hit hard by the Sino-US trade war.