Article Highlights

  • U.S. crude oil inventories up by 4.1M barrels vs. 0.9M forecast
  • BOE Gov. Carney: Brexit not the biggest risk for U.K. stability
  • Carney: Some data lines up with upgraded BOE forecasts
  • U.S. President-elect Trump: Drug companies “getting away with murder”
  • Trump to CNN: “You are fake news.”
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And so it begins. The Donald stepped up to the podium for his first press conference and wreaked havoc on U.S. stocks and the dollar.

Major Events:

Trump’s press conference – So much for that honeymoon period! The U.S. President-elect showed everyone he meant business during his first press conference a few days before officially stepping into office. He started off by saying that drug companies are “getting away with murder” and that biotech and healthcare prices need to come down, weighing heavily on the shares of these sectors for the most part of the session.

Of course Trump also couldn’t help but talk about Hillary, her leaked emails, the alleged Russian hack on the elections, Putin, Mexico, General Motors and a whole bunch of topics… everything but his administration’s fiscal policy plans for increasing infrastructure spending or tax reform. He even had a row with a journalist who tried to ask a question, calling his organization “fake news” and going on to bash new agencies. At one point during his rant, I thought he was about to yell “You’re fired!”

The VIX or volatility index, which is considered a gauge of fear in the markets, spiked 4% to an intraday high of 12.23 during the presser before easing down 1.9% before the markets closed. The Nasdaq’s Biotechnology Index closed 3% lower for the day but U.S. equity indices managed to end slightly in the green before the bell rang.

BOE Governor Carney’s testimony – Most market participants had been keeping close tabs on Brexit-related headlines just moments before Trump grabbed the mic, as BOE Governor Carney acknowledged that some of the recent economic reports from the U.K. are actually in line with the central bank’s upgraded forecasts.

The BOE head honcho even went on to say that the Brexit isn’t the biggest risk facing the U.K. economy and added that the EU might have more to lose in this breakup. While he did say that growth is likely to slow down this year, he also pointed out that they’re seeing a healthy pickup in inflation.

Major Market Movers:

USD – The scrilla had a pretty nasty knee-jerk reaction to Trump’s presser as investors initially panicked but eventually calmed down.

EUR/USD started off at 1.0523 then slid slowly to a low of 1.0453 before quickly popping up to a high of 1.0623, USD/JPY slipped from a high of 116.87 to a low of 114.24 then recovered to 115.40, AUD/USD popped up nearly a hundred pips in a couple of hours from .7374 to .7472, and USD/CHF tumbled from 1.0230 to a low of 1.0101.

Watch Out For:

  • 5:00 am GMT: Japanese Economy Watchers Sentiment index

See also:

London Session Recap

Asian Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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