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US Markets Fluctuate Following Trump’s First Post-Election News Conference

With little meaningful economic data reported Wednesday, investors turned their focus to PEOTUS Donald Trump’s first news conference since winning the election.  Much attention was focused on the promised building of a wall at the Mexican border along with Trumps’ intent to reshape the pricing dynamics of the pharmaceutical business.  With regard to fulfilling his campaign promise of the construction of a wall along the southern border, Trump confirmed his plans to begin construction soon after taking office in 9 days, even though how the US will have Mexico pay for it, has not begun to be discussed.  “I could wait about a year and a half until we finish our negotiations with Mexico which will start immediately after we get into office, but I don’t want to wait.  Mexico in some form … will reimburse us,” Trump said.  The Mexican peso dropped to a record low of 22.04 per dollar following the press conference, continuing its post-election slide that has resulted in the Peso earning the title of world’s worst performing major currency of 2016.  Also contributing to the negative sentiment, Trump addressed US auto companies in his dialogue and warned of a high tax he would impose for all products made south of the border and sold in the US.  He then went on to congratulate Ford and Fiat Chrysler for already taking the steps to expand production in the United States. 

All three major US stock indices traded marginally higher today, closing up 0.15%-0.30%, while Treasury yields/swap rates were relatively unchanged for the day, with the yield on the 10-year note hovering just above 2.36%.  Prices of crude oil rebounded from a two-day slide today, increasing more than 3% in the trading session following news that Saudi Arabia had informed its customers in Asia that it would be cutting down on its crude supply beginning next month.  Also influencing the price of oil, the US dollar declined on the day, shedding 0.2% against major peers.  The cost of a barrel of WTI crude rose to $52.35, while Brent crude approached $55.25/barrel.     

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