(JPM on Trump agenda) Trump Tues night pushed for passage of his third economic pledge (infrastructure spending) while also advocating for an immigration compromise and budget deal along w/lower drug prices (incidentally, the political dynamics on these issues hasn’t changed in the last 24 hours – an immigration and budget agreement by Feb 8doesn’t seem likely while the infrastructure and drug price blueprints are inchoate at best).
(Bloomberg) There was little of the president’s trademark antagonism in the speech as he made a bid for a bipartisan tone, promising to unify the country. His opponents did not think he went far enough, with some grumbling and booing among Democrats in the Congress during the speech. There was little policy in the address for markets to latch on to, with the dollar weakening in the aftermath.
(JPM on 1 PM CST FOMC decision) We don’t anticipate a rate hike and post-meeting statement language tweaks shouldn’t be too momentous. Bloomberg reports investors will closely read the statement for any hints of a hawkish turn. Specifically, a bigger uncertainty is how the committee will describe inflation.
(Bloomberg) Two days of violent price action in U.S. stocks and now everyone’s worried the party’s over. It’s been a long celebration. In a little more than a year since Donald Trump was elected president, the S&P 500 Index has yet to have a down month, and $8 trillion of equity value has been created. Looking around, you could be forgiven for thinking it’s gotten a little extended — that we’re closer to the end than the beginning. This week has seen the heaviest selling since May as investors questioned the rally’s staying power. Article highlights seven charts that show the bloom is off the rose in a bull market that is seven months away from becoming the longest ever.
(Reuters) U.S. shale producers are facing rising costs for everything from drilling rigs to pressure pumping equipment and labour as the cyclical expansion in oil prices and drilling matures. The cost of drilling oil and gas wells has increased significantly over the last year, according to the latest provisional estimates from the U.S. Bureau of Labor Statistics.
(Reuters) Oil prices are unlikely to advance much higher than $70 a barrel in 2018, with the market caught between the opposing forces of OPEC-led production cuts and surging U.S. output, a Reuters poll showed on Wednesday. The survey of 34 economists and analysts forecast that Brent crude will average $62.37 a barrel in 2018, up from the $59.88 forecast in the previous monthly poll.
(Reuters) A surge in platinum prices this month has seen the metal used in autocatalysts break above a downward trendline in place since early 2013, the first indication of a turnaround in momentum after years of decline led to stagnation. However, prices are vulnerable to a short-term correction and have more ground to make up before a positive pattern is confirmed. Still, it’s an indication that platinum’s long-running grind lower may be on the turn, technical analysts say.