Tonight’s the Night! Let’s Hope It’s Alright

Tonight’s the Night! Let’s Hope It’s Alright

Today is the day for Trump’s long anticipated speech to the Congress where he will prosecute his case for Making America Great Again by providing details of his long waited for policies. This all happens around 9pm Wall Street Time or about 1 pm Sydney Trading Time.

So what do we expect? Expectations are high and the markets are looking for policies on banking deregulation, changes in policy for the EPA (Environmental Protection Agency ) where it seems possible that industry and miners will no longer have to concern themselves with what is flushed down the drains into the watercourses thus ensuring bigger profits, Trump’s amazing tax package, how bad the previous administration was and ultimately the dismemberment of Medicaid which will see large numbers of U.S. citizens no longer having access to medical insurance unless their employer is paying or they have sufficient funds. No one should complain because those policies were known and Trump won his overwhelming Presidency on those policies.

Today or rather tonight we get the detail.

On the day markets were relatively muted and thin. If one can remember the mood is somewhat like a budget night where traders in Sydney and Melbourne would sit at their desks waiting for policies and trade accordingly to what was being said at the time. The market is in a period of heightened excitement and ready to pounce.

On the day the Vix rose a little but hardly reflecting any real fears. That may change if Trump’s address fails to impress traders and investors alike.

Bonds were slightly better on the day and the month of February was one of the better months for bonds since June last year, in fact it is the best month since June last year.

Aussie Market Today.

Markets should remain quiet until around lunchtime and depending on how markets view Trump’s speech we could see volatility or see the day finish in a quiet mood. That being the case I expect equities and bonds to soften a little however that could change later in the day.  Markets have priced in a lot of Trump’s policies without the detail. Let’s hope that markets are not disappointed. Bill Dudley / John Williams have been speaking today, both were very supportive of a rise in interest rates in the near term!