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Top 5 Things to Know in the Market on Tuesday
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Loading...1. U.K. Supreme Court rules against government on Brexit
The U.K. Supreme Court ruled on Tuesday that British Prime Minister Theresa May must get Parliament's approval before triggering Article 50, which begins Britain's formal exit from the European Union.
The court also ruled that the government does not have to consult the devolved parliaments in Northern Ireland, Scotland and Wales before triggering Article 50.
May has suggested such a decision wouldn’t affect her timetable to begin the process by the end of March.
Sterling initially rose to 1.2534 against the dollar immediately after the decision was announced, but quickly turned lower to trade at 1.2475 by 5:55AM (10:55GMT), down around 0.5% (GBP/USD).
2. Dollar recovers after skidding on Mnuchin's comments
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.3% at 100.27 in New York morning trade, recovering after slumping to 99.88 earlier, a level not seen since December 8.
The dollar sold off after President Donald Trump's nominee for Treasury Secretary Steven Mnuchin said that an "excessively strong" dollar can have negative short-term impacts on the U.S. economy.
Mnuchin is still awaiting confirmation by the Senate, which has yet to schedule a vote.
Against the yen, the dollar was up about 0.6% at 113.38, after falling to a seven-week low of 112.53 earlier.
Meanwhile, the euro fell around 0.3% to 1.0735, pulling back from 1.0772, its highest since December 8.
3. President Trump to meet with U.S. auto CEOs
U.S. President Donald Trump plans to meet with executives from Ford, General Motors (NYSE:GM) and Fiat Chrysler at the White House on Tuesday, as he puts pressure on the auto industry to boost investment in the U.S.
It will be the first time the CEOs of the Big Three carmakers meet jointly with a U.S. president since a July 2011 session with President Obama.
In a meeting with top executives of U.S. manufactures at the White House on Monday, Trump vowed “massive” cuts in taxes and said he could reduce regulations by "75% or more" to help businesses create more jobs in the U.S. The president also reiterated his pledge to impose a hefty border tax.
4. U.S. earnings season gains momentum
U.S. fourth-quarter corporate earnings season gathers pace on Tuesday, with majors such as 3M, Alibaba (NYSE:BABA), DuPont (NYSE:DD), Johnson & Johnson (NYSE:JNJ), Travelers and Verizon all set to report ahead of the opening bell.
After the close, Texas Instruments (NASDAQ:TXN), Alcoa (NYSE:AA), Capital One, Discover Financial, Intuitive Surgical (NASDAQ:ISRG), Seagate Technology (NASDAQ:STX) and Stryker are on tap.
5. Euro zone businesses get off to strong start in 2017
Economic activity in the euro zone got off to a strong start in January, with employment rising at the fastest rate since, preliminary data showed on Tuesday.
Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors dipped from 54.4 in December to 54.3 in January.
Growth edged slightly lower in both manufacturing and services, but in both sectors the rate of expansion remained robust by recent standards, especially in the goods-producing sector.
The data signaled respectable quarterly GDP growth of 0.4% with a broad-based expansion across both manufacturing and services.
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