US stock indexes pointed to a lower opening in pre-session hours on Tuesday as market players looked ahead of President Donald Trump speech and batch of economic data and Fed officials scheduled later in the day.
On Monday, top three Wall Street indexes ended with moderate gains amid low trading volumes. Traders opted for a cautious positioning ahead of Trump’s address to the Congress.
WRITE IT DOWN ---> Trump’s speech at 21:00 GMT
Investors will be searching for hints on its tax reform and deregulation plan. A positive outcome for markets could involve a softer pro-growth rhetoric, rather than a populist hard-line approach.
President Trump promised to unveil his long-awaited tax plan in the near term and said it would be a “phenomenal” change for individual and business.
The Dow Jones industrial average reached a record high yesterday, with investment bank Goldman Sachs leading advancers. The index is now at its longest winning streak since 1987. Meanwhile, the S&P 500 added 0.1 percent by the end of session, with energy components contributing the most. The Nasdaq composite was up 0.28 percent.

• Dow Jones Industrial Average: +0.08 percent / 20837.44 points
• Standard & Poor’s 500: +0.10 percent / 2369.73 points
• Nasdaq Composite: +0.28 percent / 5861.90 points

Washington news were also in the spotlight on Monday. After meeting with several governors from the administration, Trump said in his first budget, to be issued next month, will ask for a raise of $54 billion in defense spending, compensating that sum by reducing other programs.
Monday was a light day for economic events. Durable goods orders increased by 1.8 percent in January, a tick above expectations. Pending home sales fell 2.8 percent. Dallas Fed President Robert Kaplan reaffirmed that a rate hike would be better sooner than later.
Apart from Trump’s speech, investors will pay close attention to data later today. Fourth-quarter gross domestic product will come at 13:30 GMT, with analysts pointing at a 2.1 percent build. Goods trade balance for January is due at the same time and it’s expected to move to -$66 billion from a previous -$64.40 billion. Conference board consumer confidence index for February will be out at 15:00 GMT. FOMC members Harker, Williams and Bullard are due to speak overnight.

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US President Donald Trump will address the US Congress on Tuesday at 21:00 GMT and YES, all market players will be following each and every single word of his speech.
Unless you have been sleeping since November 2016, you have probably noticed that US equity markets reacted very positively to Trump’s victory and inauguration and economic promises. That’s right, a lot to take in.
By taking a look only at the S&P 500, we see a 10 percent build since last year’s election. But after all, there hasn’t been any real economic measures that actually impacted markets. So… what’s the driver behind growth? A single very well-known word, speculation.
Trump’s key economic promises (tax reform, deregulation and higher fiscal spending) have been in the spotlight for quite a while. But right now, attention is placed mostly on the tax plan, as the Republican have promised to unveil it in the near term, while adding it’s going to be a “phenomenal” action for American consumers and business.
On this regard, Treasury Secretary Steven Mnuchin said in an interview last week that the new administration will try to push the tax reform in Congress before mid-year break. On Sunday, Mnuchin also anticipated that Trump will touch this issue on today’s speech. The Secretary also said that Trump could provide some extra details on the plan, of which little is known so far.
With stocks standing at record-highs due to speculation, most analysts are betting on a pullback rather soon. And Trump’s speech could be actually the trigger of it. If market players believe he is not able to keep up with the pace and fulfill his promises soon, sellers could take over and push stock indexes to the downside.
And there is one more thing. Even if he is able to send a trustful message about his tax plan, markets have already anticipated and digested it, making the announcement less of a shock.
While the tax reform will be the main focus, it’s not the only topic to be discussed. Investors will also pay attention to any comments on fiscal spending, construction, budget, deregulating certain industries, repealing the Affordable Care Act and more.

GOLD
Gold prices edged lower in early Asian trading on Tuesday, leaving 3-½ month peaks behind but remaining a strong positioning ahead of President Trump’s speech later in the day.
On the Comex division of the New York Mercantile Exchange, gold for April delivery fell 0.44 percent to trade at $1253.20 a troy ounce as of 00:40 GMT.
The yellow metal have posted relevant gains as market participants moved into safe-haven assets such as gold anticipating the Republican leader address before the Congress at 21:00 GMT. Analysts are expecting further details on the tax reform and deregulation actions.
Trump words will be in focus during the evening, but gold prices are also supported by upcoming political events such as presidential elections in France, Germany and the Netherlands. As well as Fed Chair Janet Yellen speech scheduled on Friday.
The precious metal is sensitive to changes in US benchmark rates, which elevate the opportunity cost of keeping non-yielding assets in portfolio. Also, higher rates boost the dollar against other currencies, making greenback-denominated gold more expensive abroad.
On Monday, Dallas Fed President Robert Kaplan defended the idea that raising rates should be done rather soon. His dovish approach to the matter gave a little upside push to the dollar.
In economic news, the Commerce Department reported a 1.8 percent build in durable goods orders, a tick above market forecast. Ahead on Tuesday, traders will keep an eye on fourth-quarter gross domestic product and goods trade balance for January at 13:30 GMT. Conference board consumer confidence index for February will be released at 15:00 GMT. FOMC members Harker, Williams and Bullard are due to speak in the evening.

OIL
Oil prices were higher in Asian trade on Tuesday, extending moderate overnight gains despite worries that a larger US oil output would undermine OPEC-led cuts to push quotes up.
US West Texas Intermediate oil futures traded at $54.09 a barrel on the New York Mercantile Exchange, up 0.07 percent from its previous settlement. The London-based Brent crude oil futures was down 0.13 percent to trade at $55.86 a barrel as of 00:40 GMT.
The American Petroleum Institute is due to release its weekly crude production stockpiles report, which comes a day earlier than official data from the US Energy Information Administration. Analysts are foreseeing a 2.85 million barrels build in crude inventories, a 2.00 million reduction in gasoline stockpiles and a 916 thousand drop as for distillate products.
Oilfield service provider Baker Hughes said on Friday that US shale oil producers added 5 rigs in the week ended February 17, which moved the total count to 602 units.
Increasing US output pressures oil benchmarks, as traders believe it puts in risk the efforts made by OPEC and non-OPEC members, which are reducing their production by 1.8 million barrels per day during the first six month of the year.
Genscape reported on Monday an increase of more than 800 thousand barrels of crude oil at the Cushing storage hub in Oklahoma. News supported both benchmarks and helped them settle in green territory by the end of session.

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Wall Street stock indexes ended slightly higher on Friday, as investors looked ahead of remarks of President Donald Trump before Congress on Tuesday (21:00 GMT).
While analysts believe Trump won’t be giving much details on his economic measure, he could mention the upcoming tax reform, deregulation measures and other issues that are meant to pass through Congress later this year.
However, it’s also relevant to understand that lawmakers are currently focus in repealing Obamacare and a Supreme Court nomination rather than dealing with economic proposals.
The Dow Jones industrial average posted a relatively small gain on Friday, but it marked a 11-day winning streak, the longest since 1992. The S&P 500 added 0.15 percent to end at a new all-time high, while the Nasdaq composite was up 0.17 percent.

• Dow Jones Industrial Average: +0.05 percent / 20821.76 points
• Standard & Poor’s 500: +0.15 percent / 2367.34 points
• Nasdaq Composite: +0.17 percent / 5845.31 points

Last week, Treasury Secretary Steve Mnuchin said during a TV interview that the tax reform is due to pass through Congress before the August break, which boosted speculation in markets.
As for data, the Commerce Department said new home sales grew 3.7 percent in January, falling short from a forecasted 6.3 percent increase. Consumer sentiment for February came in at 96.3, above expectations of 96.0 points.
Later in the day, durable good orders for January will be published as of 13:30 GMT, with analysts pointing at a 1.7 percent build. Pending home sales are due at 15:00 and expectations currently stand at a 0.8 percent growth rate. President and CEO of the Federal Reserve Bank of Dallas Robert Kaplan will be speaking at 16:00 GMT.

If you are still not sure where to put your money this year, you should give a better look at your home and mobile devices. Not only technologies make your life easier, but they can also help enlarge your wallet.
The technology sector has been posting strong gains in the last few months. Last week, S&P’s tech components took a breather after a 15-day winning streak. Keep the long face, you are still on time to buy some pretty awesome stocks for your new portfolio.

Politics in the mix
As it’s no surprise, rumors have been floating around regarding President Donald Trump’s migration policies and its dangerous effect for the tech sector. In case you didn’t know, Silicon Valley currently employs a large number of engineers coming from all around the globe. If their visas get blocked or rejected, it could again hit on the uncertainty button and send stocks lower.

Stay safe, buy giants
Let’s be clear. Big companies are on the top for something,... they perform. So if you are new here, it’s advisable to start with those large ships that won’t leave you halfway empty-handed. And of course, if you are still interested about trying on a riskier choice, go ahead, but keep a balanced well-established portion of at least these five: Apple, Amazon, Alphabet, Microsoft and Facebook. Once you’ve got them, sky is the limit!?
Or… Buy all good together?
Honestly, not everybody wants to stay plugged all the time looking at thousand charts per hour. Luckily, there is a great alternative: the Technology Select Sector SPDR Fund (XLK). This fund is a perfect alternative for a low-cost passive investment in the major tech sector players.
If you compare the fund with the S&P 500, you’d notice that it has been outperforming the major index for quite a long time, giving a good sign that things are going well for techies.
At the time, Apple stays on top of the fund, taking almost 15 percent of the positioning. Microsoft follows with 10.22 percent and social network Facebook is on the third place with 6.45 percent.
Check out the current composition:

GOLD
Gold prices moved higher in Asian trade on Monday, with market players putting their eyes on the Fed’s next move and looking ahead of remarks from President Donald Trump on Tuesday.
On the Comex division of the New York Mercantile Exchange, gold for April delivery was down 0.02 percent to trade at $1257.90 an ounce as of 07:10 GMT.
Bullion ended last week on a 3-½ months peak as the US dollar extended losses and economic reports eased expectations regarding a March interest rate.
The Commerce Department reported on Friday a 3.7 percent build in new home sales for January, below forecasts of a 6.3 percent increase. Michigan’s consumer sentiment came in at 96.3 points in February, in line with analysts’ expectations.
While it seems that traders are feeling less confident about a rate hike next month, speeches from Fed officials will remain in focus this week. Investors will continue to weigh economic data in search for hints on whether the US regulator should or not proceed with a raise “fairly soon”.
This week’s key event will certainly be President Donald Trump’s address to the Congress on Tuesday at 21:00 GMT. Market players will pay close attention to his words for further details on economic promises, especially on the upcoming tax reform, deregulation and fiscal spending. Fed Chair Janet Yellen will be speaking on Friday at 18:00 GMT.

OIL
Oil prices rose in pre-European session on Monday as investors looked ahead of an update on February crude supply and demand data from the International Energy Agency (IEA).
US West Texas Intermediate oil futures traded at $54.31 a barrel on the New York Mercantile Exchange, up 0.59 percent from its previous settlement. The London-based Brent crude oil futures soared 0.68 percent to trade at $56.37 a barrel as of 07:10 GMT.
Also in focus will be President Donald Trump address to Congress on Tuesday and Fed Chair Janet Yellen speech on Friday. Both events promise to attract large attention as investors look for further details on economic promises such as the tax reform and the regulator’s next move.
But traders will also keep their eyes wide open ahead of US crude stockpiles. As usual, the American Petroleum Institute will release its weekly estimation on Tuesday, followed by official figures from the Energy Information Administration on Wednesday at 15:30 GMT. Crude inventories rose by 564,000 barrels in the week ended February 17, slowing the growth pace.
Crude benchmarks have been trading on a narrow interval around $50 per barrel for already two months as there are no relevant changes in the fundamental background. Baker Hughes reported an addition of 5 oil rigs, moving the total count to 602 platforms.
The oil market is currently balancing two big forces: OPEC-led output cut program and the response of US shale producers. So far, the IEA said OPEC compliance with the 1.8 million bpd cuts stood at 90 percent in January. However, the US production continues to increase.

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Monday
As usual, the first day of the week is not considered to be strong from a data perspective. In America, US durable goods orders will be out at 13:30 GMT and expectations point to a 1.9 percent build. Pending home sales for January are expected at 15:00 GMT. Japan’s industrial production and retail sales are due at 23:50 GMT.

Tuesday
German retail sales for January kick off the session at 07:00 GMT, followed by a batch of French economic reports at 07:45 GMT, including January’s CPI and HICP and fourth-quarter GDP. As of 10:00 GMT, the euro bloc will present its latest CPI data. In the United States, economic growth rate is also on the scheduled and it’s coming at 13:30 GMT, together with goods trade balance for January. Conference Board’s consumer confidence is due at 15:00 GMT, with analysts anticipating a reduction to 110.9 points from a previous 111.8. However, the key event of the day will certainly be President Donald Trump speech at 21:00 GMT.

Wednesday
Well, if you are feeling tired. Better stay in bed, because Wednesday is going to be a crazy day for economic reports. Manufacturing PMIs will be all over you. China will present official manufacturing and non-manufacturing PMIs at 01:00 GMT, while Caixin manufacturing will be available 45 minutes later. As for Europe, UK is first on the list with Nationwide HPI for February at 07:00 GMT. In Germany, manufacturing data will be out at 08:55 GMT, followed by unemployment rate, which is expected to remain steady at 5.9 percent. Markit will release UK’s manufacturing PMI at 09:00 GMT and Germany’s half an hour later. Bavarians will have a busy day, because a preliminary version of February’s CPI is due at 13:00 GMT, with analysts pointing at a 0.5 percent build. US traders are not getting any less than others. Core PCE price index for January will be release at 13:30 GMT, together with personal spending data. Markit PMIs are scheduled at 14:45 GMT, while the Institute of Supply Management (ISM) has set its own version at 15:00 GMT. US Energy Information Administration will publish its weekly crude oil inventories at 15:30 GMT and the Fed will present the Beige book at 19:00 GMT.

Thursday
Only one more day to rest! For those trading in European hours, keep an eye on Switzerland’s fourth-quarter gross domestic product (GDP) at 06:45 GMT and retail sales for January as of 08:15 GMT. Expect some extra volatility in the CHFUSD. Construction PMI for February in the UK will be out at 09:30 GMT and it’s likely to attract a lot of attention. Eurozone will release its inflation statistics for January at 10:00 GMT, with analysts pointing at yearly rate of 2.0 percent from a previous 1.8 percent. Unemployment will be presented at the same time and economists forecasted a drop to 9.5 percent.

Friday
Finally. The week comes to an end but first, PMI reports for the service sector. China’s Caixin Services PMI will be out at 01:45 GMT. Markit will release PMIs in Italy, France, Germany and the Eurozone starting at 08:45 GMT. UK’s services PMI will be available at 09:30 GMT. EU retail sales for January are also scheduled on Friday at 10:00 GMT. As for the United States, Markit composite and services PMI will be published at 14:45, followed by ISM non-manufacturing PMI at 15:00 GMT. Baker Hughes is due at 18:00 GMT.

GOLD
Gold dropped in early Asian trade on Friday as market players digested Fed’s February minutes and remarks from Treasury Secretary Steven Mnuchin who expects a tax reform by August.
On the Comex division of the New York Mercantile Exchange, gold for April delivery soared 0.19 percent to trade at $1253.80 an ounce as of 07:05 GMT.
"We want to get this done by the August recess. We've been working closely with the leadership in the House and the Senate and we're looking at a combined plan," Mnuchin said during his first TV appearance at CNBC.
Meanwhile, FOMC minutes came in dovish-than-expected, which plunged expectations for a March interest rate hike and pushed the yellow metal to a 15-week peak over $1250 an ounce.
Bullion was also supported by a falling US dollar, also affected by the minutes. Before the release, chances for a March hike were standing nearly 18 percent, according to CME Group’s FedWatch tool. It seems that some FOMC members decided to wait for further economic details of the Trump administration before making any move that would hit economic growth.
Gold is a dollar-denominated commodity, which makes it vulnerable to changes in US interest rates. Higher rates translate into less demand for non-yielding assets such as bullion.
In economic news, the US Labor Department reported a build of initial jobless claims by 6,000 last week to a total of 244,000. The movement was above expectations for a 2,000 increase.

OIL
Oil prices oscillated between small gains and losses in early trading on Friday as US inventories grew on a slower-than-expected pace while news of crude barrels being sold out of storage in Southeast Asia weighed on prices.
US West Texas Intermediate oil futures traded at $54.36 a barrel on the New York Mercantile Exchange, down 0.17 percent from its previous settlement. The London-based Brent crude oil futures fell 0.12 percent to trade at $56.51 a barrel as of 07:05 GMT.
US stockpiles added 564,000 barrels in the week ended February 17, according to the latest Energy Information Administration (EIA) report. Figures came in really short from expectations of a 3.5-million-barrel build, although it marked a seventh consecutive increase in stockpiles.
A day earlier, the American Petroleum Institute (API) said that inventories had felt by 884,000 barrels last week to 512.7 million barrels.
The Organization of the Petroleum Exporting Countries and independent producers such as Russia are currently cutting their output levels as part of a massive plan to rebalance supply in oil markets. Together, OPEC and non-OPEC members are trying to shred 1.8 million barrels per day from global production in the first six months of 2017.
As a response to the OPEC-led action, external producers such as the United States have reacted by raising shale oil production to levels not seen in years. However, analysts point that inventories will have to fall eventually because it’s simply unsustainable.
News agency Reuters reported that tankers anchored off Malaysia, Singapore and Indonesia have been selling nearly 12 million barrels of crude in the last month.
Today, market players will keep an eye on Baker Hughes oil rig count at 18:00 GMT.

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US equity markets were pointing to a slightly positive opening on Thursday as market players looked ahead of further economic reports and hints on the timing for a future Fed rate hike.
Yesterday, Wall Street indexes closed mixed following the publication of minutes from the Federal Open Market Committee for the Jan 31 - Feb 1 policy meeting. According to the document, the FOMC members agreed that a rate hike could become effective “fairly soon”.
"Many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon" if economic and labor reports continue to be "in line with or stronger than their current expectations," Fed minutes stated.
The FOMC is gathering on March 15 for a second meeting under a Trump administration and odds for a rate hike stand at 27 percent, according to CME Group’s FedWatch program.
From a data perspective, the only relevant report was existing home sales, which increased by 3.3 percent in January. Analysts were expecting a 1.1 percent build.

• Dow Jones Industrial Average: +0.02 percent / 20,624.05 points
• Standard & Poor’s 500: +0.17 percent / 2,351.16 points
• Nasdaq Composite: +0.41 percent / 5,838.58 points

Ahead in the day, US Treasury Secretary Mnuchin will take part at his first TV interview on CNBC as of 12:00 GMT. President and CEO of the Fed Bank of Atlanta Dennis Lockhart is scheduled at 13:35 GMT, while Dallas Fed President Robert Kaplan will speak at 18:00 GMT.
In a light day for data, initial jobless claims are due to be release at 13:30 GMT, with analysts pointing at a 2,000 increase to 241,000 applications. Commodity traders will pay close attention to official crude inventories after API reported overnight an unexpected drop of stockpiles.
European markets have opened mixed, with traders focusing on earning reports. The Euro Stoxx 50 was 0.27 percent higher as of 09:50 GMT, to trade at 3347 points.
In Asia, equities ended in red territory on Thursday as a reaction to the Fed minutes, which increased speculation over a sooner-than-expected rate hike in the United States.
Japan’s Nikkei 225 closed almost unchanged around 19,371.46 points. Hong Kong's Hang Seng index was down by 0.38 percent, while China's Shanghai composite posted a similar loss of 0.31 percent. Australia's ASX 200 dropped 0.35 percent to end at 5,784.66 points.

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Yes. Markets are still moving up and if there one reason behind this positive trend is President Donald Trump’s recent promise to unveil a long-awaited tax reform.
"We're going to be announcing something I would say over the next two or three weeks that will be phenomenal in terms of tax and developing our aviation infrastructure." said Trump on Feb 9.
But not everything is as clear as it seems. While there are still those believing that the reform would be great for business and individuals, there is an increased number of analysts pointing that the tax plan could actually turn into a sell event. Why? Speculation.
That’s right. You’ve heard me. Speculation. In the last two weeks, investors have been buying consistently on expectations that Trump’s reform will reduce the tax burden on American customers and business. However, will it actually do that?
Taking a look at the S&P 500, it’s said that for each percentage point ripped from taxes, the index only adds nearly 1.30 dollars to total annual earnings. In other words, don’t be so sure this tax reduction will have such a positive effect on the economy.
Also, keep in mind that US equities have been growing on the basis of this event, so… a confirmation will provoque a moderate movement but don’t expect too much out of it. After all, it’s all been kind of anticipated by traders.
If market participants start to analyze the true impact of this tax reform, then it will automatically change into a “sell-the-news” event. Right! That same old phrase: “buy the rumor, sell the news” but well… nobody has a crystal ball here and after all, it’s your own judgement which counts.

GOLD
Gold prices moved higher in Asian trade on Thursday despite growing speculation that the Federal Reserve will continue to hike interest rates sooner than initially thought.
On the Comex division of the New York Mercantile Exchange, gold for April delivery eased 0.28 percent to trade at $1236.80 an ounce as of 06:45 GMT.
The Federal Reserve Open Market Committee minutes from the latest policy meeting showed that the regulator is considering a rate increase "fairly soon". This confirmation pushed the US dollar higher, pressuring bullion prices along the way. The February encounter was the first one under a Trump administration and it was marked by higher levels of confidence in the private sector, as speculation continued to build on higher fiscal spending, tax reforms and deregulation promises.
"Many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon" if economic and labor reports continue to be "in line with or stronger than their current expectations," the Jan 31 - Feb 1 meeting summary said.
However, FOMC members noted that the Trump administration haven’t showed yet the real effect of its new economic policies and it might be risky making a move without accurate data.
"Most participants continued to see heightened uncertainty regarding the size, composition, and timing of possible changes to fiscal and other government policies, and about their net effects on the economy and inflation over the medium term, and they thought some time would likely be required for the outlook to become clearer," FOMC minutes stated. Gold is sensitive to moves in US interest rates as they lift the opportunity cost of holding non-yielding assets such as bullion.

OIL
Oil prices edged higher on Thursday morning, adding more than 1 percent as an industry report reported an unexpected decline in US crude stockpiles last week.
US West Texas Intermediate oil futures traded at $54.03 a barrel on the New York Mercantile Exchange, up 0.82 percent from its previous settlement. The London-based Brent crude oil futures rose 0.79 percent to trade at $56.28 a barrel as of 07:45 GMT.
The American Petroleum Institute said that crude inventories dropped by 884,000 barrels in the week ended February 17, leaving the total count at 512.7 million barrels. Market analysts had forecasted a 3.5-million-barrel build.
These figures built a stronger case for the OPEC-led output cut agreement, reviving expectations that it would promote higher energy prices in the short term. A few days earlier, the oil group recognized the level of compliance among OPEC and non-OPEC members is high.
By the time, non-OPEC producers that participate in the output agreement have delivered nearly 60 percent of the promised reduction. The oil cartel has agreed to shred 1.8 million barrels per day from global output in the first six months of 2017.
Today, traders will keep an eye on official crude inventories from the US Energy Information Administration at 16:00 GMT, a day later than the usual due to the President Day’s holiday.

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Wall Street indexes were set for a flat open on Wednesday, as market participants awaited Fed February minutes and prepared for another round of remarks from FOMC officials. On Tuesday, US equities reopened after President Day’s holiday and reached all-time highs based on news from Washington and upbeat corporate earnings.

• Dow Jones Industrial Average: +0.02 percent / 20,624.05 points

• Standard & Poor’s 500: +0.17 percent / 2,351.16 points

• Nasdaq Composite: +0.41 percent / 5,838.58 points


President Donald Trump announced on Monday that Lieutenant General McMaster will replace Michael Flynn as national security advisor. The news helped to ease domestic uncertainty.
On the earnings front, retail Macy’s and Home Depot were in the spotlight. Macy’s exposed mix results while Home Depot reported better-than-expected profits. Later in the day, big names such as Tesla, Fitbit, Bayer and Six Flags are set to release their earnings. As for economic data, Markit preliminary manufacturing and services PMI for February came in below expectations at 54.3 and 53.9 respectively.
Today, market players will keep an eye on existing home sales for January at 15:00 GMT, with analysts pointing at a 1.1 percent build of 5.54 million units. Fed Governor Jerome H. Powell will give a speech as of 18:00 GMT and FOMC minutes will be released at 19:00 GMT.
In Europe, stock markets were moving upwards on Wednesday, with the pan-European Stoxx 600 adding 0.4 percent as most sectors traded in green territory. Lloyds Banking Group stocks rose by more than 4 percent after it reported its highest yearly profit in over a decade.
Asian markets closed higher earlier today, following Wall Street upbeat performance and as traders continued to speculate on further details on the tax reform from Trump’s administration. The Japanese Nikkei 225 was almost flat at 19,379.87 points, with the yen trading at 113.43 per dollar. Automaker Toyota was up by 0.39 percent, while Sony added 0.40 percent.
Australian ASX 200 was able to recover from previous losses and advance 0.24 percent in the session to 5,805.09 points. RBA Governor Philip Lowe said that moving forward with interest rate cuts would not be good for Australia as it increases risks on household debt.
Hong Kong's Hang Seng index rose 0.85 percent, while China's Shanghai composite ended 0.23 percent higher at 3,260.93 points.

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GOLD
Gold dropped in early trading on Wednesday as market players looked ahead of Fed February minutes to better understand the regulator’s position on interest rate normalisation. On the Comex division of the New York Mercantile Exchange, gold for April delivery eased 0.24 percent to trade at $1235.90 an ounce as of 07:25 GMT.
Gold traders continued to monitor speeches from FOMC members to determine the regulator’s next steps on monetary policy, especially if there are real chances of a March rate hike or not.
On Tuesday, Philadelphia Fed President Patrick Harker assured that he would prefer an interest rate hike in March if the economy continued to strengthen. His remarks are in line with Cleveland Fed President Loretta Mester, who said a day earlier that it would be more “comfortable” to hike next month.
Also, Markit reported a lower-than-expected preliminary reading on the manufacturing PMI (54.3 vs 55.3 estimated) and services PMI (53.9 vs 55.8 estimated) for February. These figures increased doubts regarding a March hike, as Fed’s Yellen said last week that the economy should keep growing at the current pace to adjust rates.
Today, market players will pay close attention to the release of Federal Reserve minutes from the January monetary policy meeting in search for hints on the timing of the next rate hike. Gold is very sensitive to changes in US benchmark rates. As it is a dollar-denominated commodity, higher rates lift the opportunity cost of holding non-yielding assets such as bullion.

OIL
Oil prices extended gains in Asian trade on Wednesday as trades remain on an optimistic position ahead ahead of industry weekly data on US crude stockpiles. US West Texas Intermediate oil futures traded at $54.50 a barrel on the New York Mercantile Exchange, up 0.31 percent from its previous settlement. The London-based Brent crude oil futures soared 0.42 percent to trade at $56.90 a barrel as of 07:45 GMT.
The American Petroleum Institute (API) is due to release its weekly estimate on crude reserves later in the day, while official data from the US Energy Information Administration will be available tomorrow at 16:00 GMT.
So far, analysts are pointing at a 3.325 million-barrel build for the week ended February 17, and a reduction of 1.625 million barrels for gasoline and 1.075 million barrels for distillates.
Yesterday, oil benchmarks settled higher after OPEC Secretary General Mohammed Barkindo said that the oil group was successfully accomplishing the goals of its agreement to reduce 1.8 million barrels from global production and showed himself confident of further commitments. Barkindo also mentioned the willingness of independent producers, such as Russia, to keep working on this agreement, while adding that compliance currently stands nearly 90 percent.
His comments at the International Petroleum Week conference renewed speculation on higher energy prices despite an increasing US shale production. Data has been recently showing that the United States is constantly growing its output level to counteract the OPEC-led efforts to rebalance oil supply and demand.

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US equities were pointing to a higher open on Tuesday as market participants returned from a long weekend and looked ahead fresh economic data and earnings reports.
Wall Street main three indexes reached new all-time highs last Friday amid low activity volumes and as traders turned their focus into France’s upcoming presidential election.

• Dow Jones Industrial Average: +0.02 percent / 20,624.05 points 
• Standard & Poor’s 500: +0.17 percent / 2,351.16 points 
• Nasdaq Composite: +0.41 percent / 5,838.58 points 

Later today, investors will keep an eye on PMI reports and a few speeches from FOMC officials. Markit is releasing preliminary manufacturing and services PMI for February, with analysts estimating growth to 55.2 and 55.7 points respectively.
Minneapolis Fed President Neel Kashkari is scheduled at 13:50 GMT, while Philadelphia Fed President Patrick Harker will speak at 17:00 GMT. Last but not least, San Francisco Federal Reserve President John Williams coming at 20:30 GMT.
Market players are watching carefully all speeches from Fed representatives as chances for a March interest rate hike have suddenly spiked following last week’s Fed Chair Janet Yellen remarks before the US Congress. Yellen said the regulator will increase rates in the near future.
In the same line, Cleveland Fed President Loretta Mester said on Monday that starting to raise benchmark rates at this stage would be more “comfortable” than waiting too long.
"So I'm comfortable that inflation is near its goal and moving toward its goal... I'd be comfortable with an increase in the funds rate at this point, if the economy keeps going the way it's going."
In Europe, markets were mainly higher on Tuesday amid upbeat economic data from Germany and the Eurozone. German manufacturing and services PMI for February came in better-than-expected at 57.0 and 54.4 points against expectations of 56.0 and 53.6 respectively. Similar indexes for the Eurozone were also above forecast at 55.5 and 55.6 points. Market players also monitored BOE Governor Mark Carney address to the Treasury Committee.
Asia equities closed mixed on Tuesday, with investors still speculating on President Donald Trump economic promises, including a pending tax reform due to be announced rather soon.
The Japanese Nikkei 225 soared 0.68 percent to end at 19,381.44 points, as exporters continued to benefit from a weak currency. The yen extended losses against the US dollar, trading near the 113.40 mark. A weaker yen makes local products more competitive abroad.
Hong Kong's Hang Seng index eased 0.64 percent, while China’s Shanghai Composite edged up by 0.41 percent to trade at 3,253.24 points by the end of the session.

Fort Financial Services

Yeap. Those same three letters you see every month on the economic calendar. First, you should understand that PMI stands for Purchasing Managers’ Index.
This index is released each period in more than 30 countries by Markit. But in the United States, the Institute of Supply Management develops a separate similar index. Before thinking of which one is best, let’s focus on what PMI figures actually tell us.
Both indexes are designed to provide a feeling on the activity of purchasing managers in the private sector. According to Markit Group, surveys for manufacturing sector cover a wide variety of fields, such as “output, new orders, new export orders, backlogs of work, output prices, input prices, suppliers’ delivery times, stocks of finished goods, quantity of purchases, stocks of purchases, employment.”
However, Markit offers a monthly PMI index for other sectors, including services, construction and a compiled version. Keep in mind that those versions are not necessarily available in all countries that Markit operates with.
For those trading exclusively in the United States equity markets, the ISM PMI could be a better alternative as it covers all the North American Industry Classification System in their surveys. On the contrary, Markit Group uses a large base of over 400 companies but which belong entirely to the private sector.
You can access ISM latest PMI report here: https://goo.gl/AkCulu
You can access Markit latest PMI report here: https://goo.gl/N2IiIl

How to read PMI reports?
If the index comes above 50, it marks that the sector is expanding, while a reading below 50 shows contraction. While data might not be extremely moving for traders, they use it to estimate production volumes and other indicators related to the manufacturing sector.
A higher-than-expected reading in the Manufacturing PMI is seen as a bullish signal for the US dollar, while a neutral or lower-than-expected results could push the greenback downwards.

Upcoming Releases
21.02.17 /// US /// Preliminary Markit Manufacturing PMI (February)
21.02.17 /// US /// Preliminary Markit Services PMI (February)
01.03.17 /// US /// ISM Manufacturing PMI (February) 01.03.17 /// US /// Markit Manufacturing PMI (February)

Fort Financial Services

Fort Financial Services

Haven’t heard yet? Well… Like it or not, Donald Trump has officially become the new President of the United States. And he’s already running the White House for a month, so in case you’re still digesting the inauguration, time to move on because there is plenty of work to do. If Trump has been famous for something, it’s for his hair. Just kidding… For his genius social media presence. That’s right, he has built a tremendous popularity in Twitter and now that he’s in charge, each tweet has huge power over media headlines, individual opinions and… stocks! But how to interpret those 140-character messages and turn them into profits? Well, it seems that Trump is all about extreme positions, forget about the 50 shades of Obama. Trump is about black or white, good or bad. So basically, that’s how you should read his tweets.

The Bullish Trump

• Deregulation: Less regulation means less trouble for business owners. While some argue regulation is necessary to prevent bad practices to take over and create a new crisis, Trump thinks regulation is only positive in little measure. In his opinion, deregulation translates into faster industrial execution, capabilities and job creating. 
• Infrastructure: When the government spends money, it does it BIG. Trump has a few infrastructure projects in mind, including the construction of the so-called “Trump Wall” in the US-Mexico border or the renewal of different roads. All those bills will eventually fall into the hands of construction, logistic, manufacturing companies and so on. 
• Tax Reform: Lowering taxes for business and individuals it’s a great way to promote inflation. Why? Instead of paying taxes, a consumer can use that money and spend it on something he or she wants. In that scenario, people inject more money into the system. Business reports higher earnings and stock markets move upwards. 

The Bearish Trump

• International Relations: Keeping things steady in the foreign arena has never been Trump’s intention. Political tension between the US and China or Iran could eventually weigh on the administration and stocks related to it. 
• Travel Ban: It’s not so much about the travel ban itself but rather about how local communities take it. When the ban was announced, it created a wave of protests across the United States. And Wall Street doesn’t like protests, as they are a symbol of instability and uncertainty. 
• American-made: Making your own products it’s definitely a good thing. No questions here. However, if you are threatening companies to bring their production to the US, it might not play out very well. BMW said 70,000 employees is perfectly OK for them right now and that if the US wants to sell more American-made cars, they simply need to produce better cars. Got the idea? 

Fort Financial Services

If you’re looking to diversify your portfolio in 2017, then you should consider moving some capital into gold futures. The yellow metal is currently on fire due to a mix of political and economic factors that have turned it into a highly volatile and profitable asset.
We get it… You’re interested but don’t know where to begin. Look, the first and (probably) most important thing to trade metals, or any other asset, is to understand what really moves the price up and down during a session. Is it the economic events? Is it the political events? Is it both?
Gold futures are currently trading around the $1230.00 mark, counting on a strong support around the $1220 level. So far this year, the precious metal has been moving almost exclusively due to President Donald Trump’s executive orders, economic policies and promises. However, gold is not only affected by the US calendar, it is also depending on monetary policy, political tensions between countries and increasing risks just to name a few factors.

United States
Three things to keep in mind: Donald Trump’s economic policies, international relations and Federal Reserve interest rate decisions. First goes first, Trump’s economic policies are expected to promote solid growth in the next few years, making high-risk assets such as equities more attractive to investors. This scenario also means the Federal Reserve would have to raise interest rates to keep the economy moving forward. In these cases, a bearish gold forecast is most likely. However, if President Trump won’t be able to keep good terms with other nations and the international relations continue to deteriorate, that could provide some support for gold.

Europe