Donald Trump has officially given -and in practice – the kick-off of the deregulation this Friday… and Wall Street loves it.
The US indices erased in a few hours the entirety of their losses from the beginning of the week : the Nasdaq climbs to +0.55 and registered a new absolute record of the session and closing at 5.66,8, the Dow Jones won +0.95% at 20.071 Pts.
This is not enough to beat his record, but the confidence is back: the ‘Dow’ has half of its increase in tandem with the Goldman Sachs/JP Morgan (+4.5% and +3% respectively) who cheer the unravelling of the Dodd-Frank Act by the signature of a decree of Donald Trump, this Friday. The candidate promised to overturn the Dodd-Frank Act separating the activities of the private bank (speculation) and bank deposit (savers), the President clearly holds word, re-establishing the principle of the great ‘let it be’ of the Clinton years (2nd term) and Bush years.
The commentators who do not want to see that the impact of a good economic situation on the appraisal of the actions underscore that the monthly figures for u.s. employment confirm the ‘good surprise’ to the investigation of ADP on private-sector employment.
The US economy would have created +227.000 new jobs, while the consensus official forecast +175.000 job creations for the month of January, the investors expected, with more realism to +190.000/210.000.
The unemployment rate decreased to 4.8% from 4.7%, the creations of new jobs in December were revised to just +1,000 to 157.000.
The other figure greatest economic, it was the ISM services that spring declined 0.1% to 56.5%.
The orders to the industry for December is progressing without surprise of +1.3%. Not what prompt the FED to precipitate the movement of an interest-rate normalization as early as mid-march. It is, in any case, the implicit message delivered by the bond market with a relaxation -3Pts base on the T-Bonds, to 2.45%.
This session of Friday was really that of the financial: huge volume on Bank of America (+2.5%), and breakthrough of Mellon (+2%), Wells Fargo (+2,7%), AMEX (+2%) and Visa (+4,55%).
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