Responding to Trump's Sunday criticism, Germany's economy minister Sigmar Gabriel said "there is a link between America’s flawed interventionist policy, especially the Iraq war, and the refugee crisis, that’s why my advice would be that we shouldn’t tell each other what we have done right or wrong" and also urged the US to "build better cars" if it wants Germans to buy them.
The week ahead will be a busy one, with a plethora of events including the Davos shindig, where particular focus will be on Chinese President Xi Jinping, the first Chinese president to attend. China will also announce GDP on Friday, which also marks the inauguration of Donald Trump as the 45th US president. Tuesday brings Theresa May's long-awaited Brexit speech.
After the overnight report previewing Theresa May's Tuesday speech calling for a "clean and hard" Brexit, cable has plunged to under 1.20 in very early (and illiquid) AsiaPac trading, the lowest level for sterling relative to the dollar since the October flash-crash. And, as DB warns, a full Brexit would be "consistent with GBP/USD at 1.06 or EUR/GBP close to parity respectively."
Good news for globe-trotting Americans: most countries around the world are free or very cheap to get in to. But, as this map from HowMuch.net shows, some countries do charge through the nose for a visa. And it's not the ones you would expect.
The US will offer to sell some 8 million barrels from the petroleum reserve. According to the notice of sale, the Energy Department is accepting bids on sweet crude oil until 2pm CT Jan. 17. The contracts will then awarded by the end of January, with early deliveries expected in February and other deliveries in March, April.
While China's unprecedented currency moves have quickly become the main talking point across global markets which otherwise have started off 2017 in an eerily calm fashion, it is the sudden surge in two-way volatility that has emerged a major threat to global market stability.
European shares fell modestly, Asian equities declined for the first day in three, and US equity futures were unchanged before the December U.S. nonfarm payrolls report. China’s offshore yuan fell the most in a year to pare a record weekly rally, while Mexico’s peso climbed after the central bank sold dollars. Oil was trading lower in early trading.
It is perhaps appropriate that in a year everyone finally admitted markets are manipulated by central banks and broken by HFT algos, that on the last trading day of 2016, the dollar flash crashed with for no reason whatsoever.
One day after the biggest drop in US stocks in two months, global stocks struggled as they tried to close out 2016 on a positive note. The dollar dropped the most in two weeks, sliding alongside bond yields, while oil retreated from its highest close in 17 months. European stocks slid from a 2016 peak on renewed concerns about Italian banks.