US equity markets finished lower on account of President Trump’s denouncement of the strong dollar, while investors await the start of Q1 earnings season on Thursday.
Accendo markets Analyst, Henry Croft commented – “The Dow Jones closed 0.3% lower as Caterpillar contributed the most loses, while the Industrial sector as a whole was the laggard on the S&P500, seeing the index fall 0.4%. The Tech-focused Nasdaq once again underperformed peers, down 0.5%.”
Spreadex Analyst, Connor Campbell added – “The President told the Wall Street Journal that he thinks the ‘dollar is getting too strong’, while once again claiming that ‘other countries are devaluing their currency’. Add onto that Trump stating he is a fan of ‘low-interest rate policy’ and the greenback was in for a pretty sour open. Regardless of whether this selloff has been overdone or not, there is little on the economic calendar to displace it from the forefront of investors’ minds, meaning the dollar may struggle to regain its footing until this afternoon’s US session at the very earliest.”
In focus today, ahead of the long weekend for European markets, will be the start of Q1 earnings season as US banking giants Citigroup, JPMorgan and Wells Fargo kick things off.
Henry Croft suggested – “Forecasts are for both Citi and JPMorgan to increase revenues by 4% and 9 respectively, although the Wells Fargo accounts scandal is seen remaining a dark cloud over the bank, expected to result in a 4% decline in revenue.”