- Trump cancels the Greenland tariffs: Says they have the framework of a future deal
- Atlanta Fed GDPNow tracker climbs to 5.4% from 5.3% but there are skeptics
- More signs of the K-shaped economy, this time from United Airlines
- US December pending home sales -9.3% vs +0.4% expected
- Trump in Davos: No nation can secure Greenland other than the United States
- Canada December producer price index +4.9% y/y vs +5.8% expected
Markets:
- Gold up $18 to $4780
- US 10-year yields down 4.2 bps to 4.25%
- WTI crude oil up 27-cents to $60.63
- S&P 500 up 1.5%
- AUD leads, CHF lags
The whole trading day was about You-Know-Who as we awaited his speech from Davos for hints of what was coming next. The fear was that he would say the US was going to annex Greenland at all costs and tariff anyone who stopped him but he didn't highlight tariffs in his speech and instead talked about how markets had fallen the day before but they were going to go back up and eventually double "sooner than anyone believes".
That was something of a tell or at least a reminder that Trump is always focused on the Dow Jones Industrial Average. That lent some comfort to market participants and led to some large bids. Those faded somewhat as a meeting between Trump and NATO's leader kicked off but there where new highs when Trump announced 'the concept of a plan' on Greenland and that there wouldn't be tariffs.
As stocks jumped on that, gold faded to $4780 from as high as $4887 and silver pared back to $90 from a high of $95. Bonds rallied with 10-year yields down 4.6 bps to 4.24%. Some of that bid in bonds may have also reflected the likelihood that the Fed's Cook remains in her job after some skepticism from the Supreme Court on the case.
Late in the day, Trump also said on CNBC that he hopes there will be no further action on Iran, something that could weigh on oil.
