Risk-On Returns as Trump Hints at Stimulus-Like Dividend and Shutdown Progress

Markets are higher, back in risk-on after Trump said the US economy is in good shape, “making money like never before,” and even mentioned that each US citizen will receive a 2K dividend. To me, that sounds like a form of stimulus — just in a different shape — which could fuel inflation. Positive news is that the government is making progress toward ending the longest US shutdown, though several more votes are still needed to reopen. It’s still unclear if CPI data will be released or not this week, and once the US reopens, all eyes will also be on the jobs data and the long-awaited NFP. So untill we have these figures out US treasuries can stay trapped in a range, but that doesn’t mean dollar can’t move. It can drop if US stocks will resume higher based on our SP500 count.

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Grega