Concerns about protectionism coming from the Trump Administration weighed on Japanese exporters. The Nikkei 225 was down -1.29%. Domestic growth in China as reflected in last week’s GDP report helped the Shanghai Composite, which rose +0.43%
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Protectionist sentiment in the U.S. had an impact on European markets, too. European equities were lower with the DAX down -0.73%. After rising last week, yields on the 10-yr. Bund also fell, closing at 0.366%.
There were no economic reports today. President Trump held a meeting with business leaders at the White House to discuss manufacturing in the U.S.
The rise in yields stalled and the 10-Year Note fell back to 2.406%. The US$ Index fell to its lowest level since early December. Gold moved in the opposite direction, closing up +0.9% to $1,215.60. Despite the weaker dollar, oil was soft, closing down -0.9% at $52.75. Note that the quoted contract for oil is now March.
On the 1st full day of the Trump Presidency, equities began on a firm note before selling set in throughout the early morning. As the day progressed, the selling pressure eased and markets recovered to close narrowly mixed.