"Disconnect between financial markets and fundamentals, potential market volatility, financial vulnerabilities and policy uncertainties could, however, derail the modest recovery. The positive assessment reflected in market valuations appears disconnected from real economy prospects." - OECD
After a turbulent overnight session on Monday morning, this morning traders settle at their desks to find a relatively calmer environment, with US equity futures down 0.2% to 2,371.75, while European stocks fell for a third consecutive day, and Asian markets which closed mixed (China up, Nikkei down, MXAP up 0.2%).
European lawmakers voted to force Americans to apply for visas when traveling to Europe in response to Washington refusing to allow all Europeans to travel to the States visa-free. The vote by show of hands is the latest in the ongoing “visa war” between Brussels and the US capital.
In his much anticipated address to Congress that was widely described as "presidential" avoiding attacks on the media and Democrat opponents, even if once again thin on detail, President Donald Trump reaffirmed his pledge on infrastructure, defense spending and tax overhaul, in broad brush strokes. Here is what a selection of Wall Street analysts thought about Trump's speech.
"From now on, America will be empowered by our aspirations, not burdened by our fears –- inspired by the future, not bound by the failures of the past –- and guided by our vision, not blinded by our doubts. I am asking all citizens to embrace this Renewal of the American Spirit. I am asking all members of Congress to join me in dreaming big, and bold and daring things for our country."
In an interview with Fox & Friends airing early Tuesday, President Trump blamed former President Obama for protests against him and other Republicans, as well as some of the leaks to come from the White House: “I think President Obama’s behind it, because his people are certainly behind it."
Money may not buy happiness, but it does buy the ultimate flexibility for making financial and lifestyle decisions. For many of the world’s millionaires, money provides a highly effective means to escape their home country when times get tough.
The main focus this week will be on President Trump's speech to Congress and Chair Yellen's speech which is the last before the blackout period. US durable goods, ISM, the BoC rate decision, EZ CPI, UK PMIs and a busy calendar in Australia & Scandinavia also coming up.
Housing bubbles are showing signs of bursting all over the world and are particularly evident in the US, Canada and Australia. With bubbles now at the peak of popping in several parts of the world, the coming collapse could make the US crash of 2007-2009 look like a warm-up act.