12.01 - Dollar is slipping on Thursday
- by Roger Gain
Markets digest Trump’s news conference yesterday.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Moody markets
Traders around the world are taking a step back to consider what the future holds with president-elect Donald Trump leading the United States.
U.S. stock futures are pointing down and the dollar is slipping.
European markets are all declining in early trading. Most Asian markets ended the day with modest losses.
Despite the negative sentiment, many global stock markets are near record highs after getting a post-election 'Trump bump'. The Dow Jones industrial average continues to trade just below the 20,000 point level.
2. Pharma falls after Trump remarks
Shares in pharmaceutical companies continue to drop Thursday as investors worry about Trump's impact on the sector's profitability.
Trump said Wednesday that many pharma companies were "getting away with murder" and that there would be more competitive bidding practices for federal contracts in his administration.
Shire (SHPG) is among the hardest hit stocks right now, down about 4%.
3. Earnings and economics
Delta Air Lines is the key company releasing earnings before the open Thursday.
It's expected to detail how it's dealing with higher fuel and labor expenses. Shares have been trading near all-time highs in recent days.
On the economic front, the U.S. Department of Labor is set to release the latest data on weekly unemployment claims at 13:30 GMT.
The U.S. Treasury Department is releasing its December budget at 19:00 GMT.
A number of U.S. Federal Reserve officials are scheduled to speak on Thursday.
Fed chief Janet Yellen is holding a 00:00 GMT town hall event with teachers.
Shares in Italy's biggest bank - UniCredit - are weakening on Thursday as the firm said it's writing off €8.1 billion ($8.6 billion) in bad loans.
Shareholders are also set to vote on its plans to raise €13 billion ($13.8 billion) to shore up its finances.
4. Gold breaks $1,200 first time in 4-months
Gold prices rallied to a 7-week high on Thursday, helped by the weaker U.S. dollar as President-elect Trump’s press conference rippled across markets.
Gold hit an intra-day high of $1,202.35 a troy ounce, a level not seen since November 23 and was last at $1,202.35.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.