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Risk-on buoyed by Trump

European stocks are trading higher today due to a general risk-on triggered by Donald Trump. He commented on deregulation and corporate tax cuts and commited to introducing a plan in 2-3 weeks which was more than enough for US stocks to surge towards new record highs. The sentiment was visible also during the Asian session (JAP225 +2.25%) and can be seen during the early European trading.

If that wasn’t enough, we got a great piece of data from China. Chinese exports rose 7.9 percent in dollar terms in January, the fastest pace in almost two year. A powerful rebound in Chinese trade may only mean good things for global markets - adding to the positive sentiment carried over from the US session. Chinese trade data showed a huge demand for Australia’s commodity exports. Chine reported a 78% YoY growth of goods received from Australia. This strong demand from China was also the source of the explosion of Australian trade surplus in December data.Another important point for the Aussie is RBA projections. The Statement on monetary policy, the flagship report from RBA was released this morning. Governor Philip Lowe already explained what to expect in the report yesterday.

Oil jumped on the EIA report, which stated that OPEC compliance reached a record 90% plus signals a growing global demand for oil. 

We had a huge jump of output data in the UK. This jump in output leaves the high business optimism measure far behind. This is in contrast to the Eurozone when strong December PMIs have not led to strong December output. GBP offseted the earlier weakness post the report. 

The yesterday release of Norwegian GDP was not a print that would set the tone on the Norwegian Krone due to one measure coming above expectations while another was softer. But when we add to this the morning data on inflation then the scales are tipped towards depreciation. Headline CPI moved from 3.5% YoY to 2.8% while 2.9% was expected and with the official target at 2.5%. In case of core CPI the market thought that a move from 3.5% to 2.6% was possible but in reality the underlying measure of inflation collapsed to 2.1% NOK was instantly sent to the bottom of the G-10 daily performance table.



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