U.S. fourth-quarter GDP growth revised up to 2.9 percent

Global Stock Markets

U.S. economic growth slowed less than previously estimated in the fourth quarter as the biggest gain in consumer spending in three years partially offset the drag from a surge in imports.

Gross domestic product expanded at a 2.9 percent annual rate in the final three months of 2017, instead of the previously reported 2.5 percent, the Commerce Department said in its third GDP estimate for the period on Wednesday. That was a slight moderation from the third quarter’s brisk 3.2 percent pace.

The upward revision to the fourth-quarter growth estimate also reflected less inventory reduction than previously reported. Economists polled by Reuters had expected that fourth-quarter GDP growth would be revised up to a 2.7 percent rate. The economy grew 2.3 percent in 2017, an acceleration from the 1.5 percent logged in 2016.

The government also reported that after-tax corporate profits increased at a 1.7 percent rate in the fourth quarter after rising at a 5.7 percent pace in the third quarter.

The government said while provisions of the income tax overhaul that came into effect in January had no effect on corporate profits for current production, they had impacted on net cash flow in the fourth quarter.

An alternate measure of growth, gross domestic income, rose at a 0.9 percent rate in the October-December period. GDI expanded at a 2.4 percent rate in the third quarter.

The average of GDP and GDI, also referred to as gross domestic output and considered a better measure of economic activity, increased at a 1.9 percent rate in the fourth quarter. That followed a 2.8 percent rate of increase in the prior period.

There are signs that economic activity slowed further in the first quarter, with retail sales falling in February for a third straight month. Housing data have been generally weak and the trade deficit hit a more than nine-year high in January.

Still, analysts believe the economy will hit the Trump administration’s 3 percent annual growth target this year, driven by a $1.5 trillion income tax cut package and a planned increase in government spending.

That could keep the door open to slightly more aggressive interest rate increases from the Federal Reserve this year. The U.S. central bank raised rates last week and forecast at least two more hikes for 2018. The Fed lifted its economic growth projections for this year and 2019.

Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, was revised up to a 4.0 percent rate in the fourth quarter from the 3.8 percent pace reported last month. That was the quickest pace since the fourth quarter of 2014 and followed a 2.2 percent rate of growth in the July-September period.

Imports grew at an upwardly revised 14.1 percent pace instead of the previously reported 14.0 percent rate. That was the quickest pace since the third quarter of 2010 and overshadowed a rise in exports driven by weakness in the dollar.

The resulting trade deficit sliced 1.16 percentage points from GDP growth last quarter, the most in a year, after adding 0.36 percentage point in the third quarter.

While robust consumer spending curbed the accumulation of inventories, the slowdown in inventory investment was not as steep as previously reported.

Inventory investment rose at a rate of $15.6 billion in the fourth quarter instead of the previously reported $8.0 billion pace. As a result, inventories subtracted 0.53 percentage point from GDP growth after adding 0.79 percentage point in the prior period.

Growth in business spending on equipment was revised slightly down to an 11.6 percent rate from the 11.8 percent pace published last month. That was still the best performance since the third quarter of 2014.

Investment in homebuilding increased at a 12.8 percent rate, rather than the previously reported 13.0 percent pace, after contracting for two straight quarters. Momentum likely slowed in the third quarter amid weak home sales.

Government spending grew at a 3.0 percent rate, revised up from a 2.9 percent pace. That was the strongest pace since the second quarter of 2015.

Stock futures up as U.S.-China trade war tensions ease

Global Stock Markets

U.S. stock index futures rose on Tuesday, adding to Wall Street’s sharp rebound on Monday, as fears of a trade war between the United States and China eased. 

President Donald Trump’s plans to impose tariffs on goods from China, which holds a $375 billion trade surplus with the United States, had rattled global markets last week. 

By 7:23 am ET (11:23 GMT), S&P 500 e-minis EScv1 were up 16.25 points, Nasdaq 100 e-minis NQcv1 were up 68.25 points and Dow e-minis 1YMcv1 were up 145 points.

Wall Street recorded its best day in 2-1/2 years on Monday and the Dow Jones Industrial Average .DJI saw its third-biggest point gain ever. 

The S&P 500 .SPX ended up 2.72 percent, the Dow 2.88 percent and the Nasdaq .IXIC 3.26 percent, with all three indexes registering their biggest percentage gains since August 2015. 

Top Trump administration officials are asking China to cut tariffs on imported cars, allow foreign majority ownership of financial services firms and buy more U.S.-made semiconductors to avoid tariffs on Chinese goods and a potential trade war. 

These were among the asks from Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer as they pursue talks with Beijing, a person familiar with the discussions 

Among the top 25 most active stocks in premarket trading, just four were in the red. 

Facebook (FB.O) was up nearly 1 percent after being hammered for days following the outcry over the social media company’s handling of users’ data. 

The company now faces an investigation by the U.S. Federal Trade Commission on how it allowed data of 50 million users get into the hands of a political consultancy. 

Kinder Morgan (KMI.N) shares were up 1.2 percent after Citigroup upgraded the stock to “buy”.

NZ dollar ekes out small weekly gain; shares drop 1% on global selloff

New Zealand's NZX 50 Index dropped nearly 1 percent on global trade news, with Synlait Milk and Sky Network Television suffering while CBL remained in a trading halt as its administrators gained more time to consider its finances.

The NZX 50 fell 85.45 points, or 0.99 percent, to 8,515.36. Within the index, 39 stocks were down, seven were unchanged and four rose. Turnover was $106 million.

Global equity markets have fallen on concerns a trade war may emerge after US President Donald Trump announced tariffs on Chinese goods and China retaliated, announcing plans for reciprocal tariffs on 128 US products. At 5:20pm, Japan's Nikkei 400 was down 3.3 percent, the S&P/ASX 200 had dropped 2 percent and the Hang Seng was 2.8 percent lower.

CBL remained in a trading halt at $3.17. The company's voluntary administrators have postponed the creditors' watershed meeting to gather more information and hired Goldman Sachs as an adviser.

Auckland-based CBL appointed KordaMentha voluntary administrators on March 2 after the Reserve Bank sought an interim liquidation of its New Zealand supervised arm and the Central Bank of Ireland made a similar move against the insurer's European division.

The second meeting of creditors gives them the choice to resolve that a deed of company arrangement be executed, resolve that the administration should end, or appoint liquidators. It must be held by May 18, and KordaMentha must release a watershed report to creditors and the market by May 11.

The New Zealand dollar is headed toward a 0.1 percent weekly gain in the face of a broadly weaker greenback as investors fret about a possible trade war.

The kiwi traded at 72.24 US cents as at 5pm in Wellington from 72.35 cents yesterday and up from 72.15 cents in New York a week ago. The trade-weighted index was at 74.27 versus 74.24.

The kiwi dollar rose to 51.14 British pence from 51.08 pence and traded at 58.52 euro cents from 58.51 cents and rose to 4.5719 yuan from 4.5460 yuan. It traded at 75.64 yen from 76.45 yen late yesterday, as the yen benefited strongly from the flight to safe haven given the trade war jitters.

The kiwi rose to 93.61 Australian cents from 93.40 cents yesterday.

New Zealand's two-year swap rate eased 1 basis point to 2.22 percent and the 10-year swap rate fell 4 basis points to 3.10 percent.

These 4 ASX shares defying the market this week with a move higher

Australian Stock Markets

While the vast majority of shares on the ASX have dropped lower today, some have managed to defy the market. Here are four shares ending the week with a move higher:

  
Concerns that President Trump is on the brink of starting a global trade war has led to the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) selling off sharply during trade on Friday.

In afternoon trade the benchmark index is down a sizeable 2.1% 5,810 points.

The Animoca Brands Corporation Ltd (ASX: AB1) share price has pushed 5% higher to 6.1 cents after announcing the launch of its Crazy Defense Heroes mobile game in the Americas and Europe on IOS devices.

The game has been very successful in the Asia, ANZ, and Africa markets, and management is optimistic it will succeed in these new markets.

The Beadell Resources Ltd (ASX: BDR) share price is up 2.5% to 8.5 cents. While not all gold miners have moved higher today, a few small miners have benefited as investors bet on the gold price moving higher after President Trump shocked global markets by announcing plans to place a tariff on US$50 billion of imports from China.

The Silver Chef Limited (ASX: SIV) share price has jumped 6% higher to $3.71 despite there being no news out of the equipment funding provider.

 Prior to today, Silver Chef’s shares were down 53% over the last 12 months.

This could mean bargain hunters are swooping in now.

The Vista Group International Ltd (ASX: VGL) share price is up almost 1% to $2.70 after the film industry software solutions company announced that it has terminated its French market distribution agreement with Côté Ciné Group. According to the release, the company has decided to address France directly.

It intends to build on its sales and delivery capabilities to take advantage of the opportunities the significant cinema market offers.

The Trump Rally

President Trump has proposed a tax reform that could be a huge bonus to Intel. As reported by the Wall Street Journal last week:

“Intel Corp. could repatriate a significant amount of its overseas cash if a U.S. corporate tax overhaul lowers the rate to 10% or less, said the company’s treasurer, Ravi Jacob.

Intel has about $20 billion in cash, said Mr. Jacob Thursday, speaking at a treasury conference in Barcelona. Companies currently have to pay a tax rate of 35% if they repatriate cash held overseas.

“We have more than 50% of our cash held in offshore entities that we cannot access without paying the 35%,” he said.”

We did notice that the September/October Intel rally came just when the Trump tax reform proposals came back in to the spotlight. If they ever succeed, (and that’s a big if with the Trump administration at odds with both houses at the moment) it will be a huge bonus for Intel, but we suspect much of the recent gains were pricing in these positives.

There are still many hurdles ahead for the proposals, and it is worrying that much of rally may be based on hope. This of course means that it could be undone just as fast if things go the other way.

Trump warns may terminate NAFTA treaty

U.S. President Donald Trump warned on Tuesday he might terminate the NAFTA trade treaty with Mexico and Canada after three-way talks failed to bridge deep differences.

The United States, Canada and Mexico wrapped up their first round of talks on Sunday to revamp the trade pact with little sign of a breakthrough coming. Trump reopened negotiations of the 1994 treaty out of concern U.S. economic interests were suffering. 

"Personally, I don't think we can make a deal. I think we’ll probably end up terminating NAFTA at some point," Trump said at a political rally in Phoenix, Arizona. 

Suggesting a termination might help jumpstart the negotiations, Trump said: "I personally don’t think you can make a deal without a termination." 

Following Trump's remarks, Mexican foreign minister Luis Videgaray tweeted: "No surprises: we're already in a negotiation. Mexico will remain at the table with serenity, firmness and with the national interest ahead." 

In a joint statement issued at the end of five days of negotiations in Washington, the top trade officials from the three countries said Mexico would host the next round of talks from Sept. 1 to 5. 

The talks will move to Canada later in September, then return to the United States in October, with additional rounds planned for later this year.

Dollar wallows at 13-month lows as 'short' bets grow

The dollar fell to a 13-month low against a trade-weighted basket of currencies on Monday, weighed down by softening U.S. Treasury yields and weak data that is undermining the case for a further rise in interest rates this year. 

Speculative "short" bets against the U.S. dollar reached the highest since February 2013 last week, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday.

On Monday, the dollar index, measuring the currency's strength against a basket of other currencies, fell to 93.823, its lowest level since June 2016. 

While the index has drifted lower since peaking in March this year, its decline has accelerated in recent weeks thanks to falling U.S. Treasury yields. Yields on ten-year benchmark U.S. bonds have shed 16 basis points in two weeks.

Investigations into alleged Russian meddling in the 2016 U.S. presidential election and whether there was collusion with President Donald Trump's campaign are viewed as obstacles to the administration's plans to boost economic growth and a negative for the dollar. 

Traders expect little relief for the dollar in a week marked by the U.S. Federal Reserve's regular meeting on policy, with the index on track to test the June 2016 lows of 93.451. 

Markets expect the central bank to keep policy rates on hold and odds on a hike by the end of the year have been whittled down to less than fifty percent, according to CME's Fedwatch tool.

A number of analysts have suggested playing the dollar-negative trade through the euro as improving economic data add to expectations of a gradual tightening of European monetary policy. 

By 0737 GMT on Monday, the euro was perched at $1.1647 - less than half a cent off an almost two-year high hit earlier in Asian trade.

U.S. makes lower trade deficit top priority in NAFTA talks

The United States on Monday launched the first salvo in the renegotiation of the 23-year-old North American Free Trade Agreement (NAFTA), saying its top priority for the talks was shrinking the U.S. trade deficit with Canada and Mexico. 

In a much-anticipated document sent to lawmakers, U.S. Trade Representative Robert Lighthizer said he would seek to reduce the trade imbalance by improving access for U.S. goods exported to Canada and Mexico under the three-nation pact. 

For the first time in a U.S. trade deal, the administration also said it wants an "appropriate" provision to deter currency manipulation by trading partners. The move appeared aimed at future trade deals rather than specifically at Canada and Mexico, which are not considered currency manipulators. 

The 17-page document asserted that no country should manipulate its currency exchange rate to gain an unfair competitive advantage, an often-cited complaint about China in past years. 

Shortly before the release of the document, President Donald Trump lashed out against trade deals and unfair trade practices, saying he would take more legal and regulatory steps during the next six months to protect American manufacturers.

The source said officials from the United States, Mexico and Canada would meet in Washington on Tuesday to discuss logistics of the talks. No date has been announced for the NAFTA talks, but they are expected in mid-August. 

Mexico's economy ministry said in a statement it would work "to achieve a constructive negotiation process that will allow trade and investment flows to increase and consolidates cooperation and economic integration to strengthen North American competitiveness." 

Trade experts have argued that shrinking the yawning U.S. trade deficit will not be achieved through trade deals but rather by boosting U.S. savings. 

Among the priorities, Lighthizer said the administration would seek to eliminate a trade dispute mechanism that has largely prohibited the United States from pursuing anti-dumping and anti-subsidy cases against Canadian and Mexican firms. 

There was no mention of active disputes between the United States and Canada over softwood lumber and dairy products, but the document targeted a range of agricultural non-tariff barriers, including subsidies and unfair pricing structures, that are currently at the heart of those standoffs. 

USTR said it would seek to strengthen NAFTA's rules of origin to ensure that the pact's benefits do not go to outside countries and to "incentivize" the sourcing of U.S. goods. It offered no details on such incentives and did not specify how much of a product's components must originate from NAFTA countries.

Fed minutes weigh on dollar, euro resumes climb

The dollar was on the defensive on Thursday, with investors low on incentives to buy the greenback after the Federal Reserve dialled down some expectations that it would hike interest rates soon, while the euro began to climb back towards a 6-1/2-month high.

Fed policymakers agreed they should hold off on raising interest rates until they see evidence that a recent economic slowdown was transitory, the minutes from their last policy meeting showed on Wednesday.

The minutes were seen to indicate heightened Fed caution towards interest rate hikes and took the wind out of an earlier bounce by the dollar, which had been plagued recently by U.S. political concerns centred on President Donald Trump.

The dollar rose 0.3 percent to 111.830 yen, pushed away from Tuesday's one-week high of 112.130 yen. The dollar index against a basket of major currencies. was down 0.3 percent at 96.972.
The euro, which went as low as $1.1168 overnight, was 0.2 percent higher at $1.1240, making its way back towards the 6-1/2-month peak of $1.1268 touched on Tuesday.

The common currency has enjoyed a bull run this month on factors including an ebb in French political concerns and upbeat euro zone data.

Asia stocks mixed, dollar subdued amid North Korea concerns

Asian stocks were mixed on Tuesday and the dollar gave up the gains it had made when the U.S. Treasury Secretary spoke in support of a stronger currency as escalating tensions around North Korea dragged sentiment lower.

Financial spreadbetters predict a mixed start for European stocks, with Britain's FTSE 100 .FTSE set to open 0.2 percent lower, and Germany's DAX .GDAXI and France's CAC 40 .FCHI to start the day up 0.2 percent and 0.3 percent respectively.

U.S. Vice President Mike Pence told business leaders in Seoul that the U.S. will review and reform the five-year-old free trade agreement between the two countries, in part because South Korea imposes too many barriers on U.S. business.

The United States and South Korea pledged at the close of Pence's visit to forge a stronger alliance. They agreed to cooperate with China to rein in North Korea, which has vowed to conduct more tests following Sunday's failed missile launch.

Pence warned North Korea on Monday that recent American military strikes in Syria and Afghanistan showed President Donald Trump's resolve should not be questioned.

Pence and South Korea's acting president, Hwang Kyo-ahn, said they would proceed with the early deployment to South Korea of the U.S. THAAD missile-defense system, in spite of China's objections. 

Despite the tensions, Wall Street posted its first session of gains in four as investors turned their attention to first-quarter corporate earnings. All three major indexes .DJI .SPX .IXIC advanced about 0.9 percent overnight.

The long, rough ride ahead for 'Made in America'

Mini motorcycle and go-kart maker Monster Moto made a big bet on U.S. manufacturing by moving assembly to this Louisiana town in 2016 from China.

But it will be a long ride before it can stamp its products "Made in USA."

The loss of nearly one out four U.S. factories in the last two decades means parts for its bike frames and engines must be purchased in China, where the manufacturing supply chain moved years ago.

Monster Moto's experience is an example of the obstacles American companies face as they, along with President Donald Trump, try to rebuild American manufacturing. U.S. automakers and their suppliers, for example, have already invested billions in plants abroad and would face an expensive and time-consuming transition to buy thousands of American-made parts if President Trump’s proposed “border tax” on imported goods were to become law.

When companies reshore assembly to U.S. soil – in Monster Moto’s case that took two years to find a location and negotiate support from local and state officials – they are betting their demand will create a local supply chain that currently does not exist.

For now, finding U.S.-based suppliers "remains one of the top challenges across our supplier base," said Cindi Marsiglio, Wal-Mart Stores Inc’s (WMT.N) vice president for U.S. manufacturing and sourcing.

Wal-Mart partnered with Monster Moto and several other U.S. companies in a drive to increase spending on American-made goods by $250 billion by 2023 in response to consumer demand for American-made goods.

Their experience has shown Americans’ patriotic shopping habits have limits, namely when it comes to price.

Take Monster Moto's bikes, which sell for between $249 to $749. Keechle, the CEO, says he can’t raise those prices for fear his price sensitive prospective customers will turn to less expensive rivals made in China.

Asian stocks struggle, dollar shines as geopolitical risks grow

Asian stocks slipped on Monday as increased geopolitical risks prompted investors to favor safe-haven bets such as government debt while the dollar drew support from Federal Reserve policy tightening expectations.

European markets were set to follow in Asia's footsteps with index futures pointing to a broadly flat start.

The cautious backdrop - fed by increasing geopolitical tensions in the Middle East and the Korean Peninsula - contrasted with rising optimism about the outlook for global growth, with Chinese data this week expected to show the economy performing well.

Top aides to U.S. President Donald Trump differed on Sunday on where U.S. policy on Syria was headed after last week's attack on a Syrian air base, while U.S. Secretary of State Rex Tillerson warned the strikes were a warning to other nations, including North Korea.

MSCI's broadest index of Asia-Pacific shares outside Japan fell for a third consecutive session, heading back towards a three-week low tested on Friday.

A U.S. Navy strike group will be moving toward the western Pacific Ocean near the Korean peninsula as a show of force, a U.S. official told Reuters on Saturday, as concerns grow about North Korea's advancing weapons program.

Korean stocks led regional losers with the main index falling to its lowest levels since mid-March as foreigners sold stocks for a sixth consecutive session.

Hong Kong bucked the regional weakness, due to strength in property stocks and financial counters. Australian shares were also stronger, up 0.6 percent at a near two-year high as higher oil and metal prices propped up commodity plays.

Economic data also offered little support with major U.S. indexes closing lower in choppy trade after a key jobs report on Friday showed the economy added 98,000 jobs in March, the fewest since last May and well below economists' expectation of 180,000. 

Stocks spooked, safe assets jump after U.S. missile strike on Syria

Bonds, gold and the yen jumped in Asia on Friday, while stocks retreated, as investors fled to safe assets after the United States launched cruise missiles against an airbase in Syria, raising the risk of confrontation with Russia and Iran.

The U.S. dollar dropped as much as 0.6 percent, while gold and oil prices rallied hard, though the early market panic ebbed when a U.S. official called the attack a "one-off", with no plans for escalation.

"It was a knee-jerk reaction because markets are starting to come back a little, as it doesn't seem like there will be further retaliation coming," said Christoffer Moltke-Leth, head of institutional client trading at Saxo Capital Markets in Singapore.

European stocks were also poised for a negative start, with financial spreadbetters expecting Britain's FTSE 100 and France's CAC 40 to open down 0.2 percent, and Germany's DAX to start the day 0.3 percent lower.

U.S. President Donald Trump ordered the strikes on Thursday against an airbase controlled by Syrian President Bashar al-Assad's forces in retaliation for a chemical attack, launched from the base on Tuesday, that killed at least 70 people.

Facing his biggest foreign policy crisis since taking office in January, Trump took the toughest direct U.S. action yet in Syria's six-year-old civil war.

A Syrian human rights monitor said the missile strike had almost completely destroyed the airbase near Homs, and the city's governor said five had been killed and seven wounded.

While U.S. allies including Britain, Australia and Saudi Arabia, as well as Syria's opposition group, welcomed the move, Russia and Iran condemned the attack.

U.S. stocks futures flat as investors await Fed speakers

U.S. stocks index futures were flat on Wednesday, after an impressive recovery on Wall Street helped the Dow Jones Industrial Average break its eight-day losing streak.

Federal Reserve officials, including Chicago Fed President Charles Evans and his Boston counterpart, Eric Rosengren are scheduled to speak at separate events and may comment on the central bank's interest rate outlook.

While Fed Chair Janet Yellen did not comment on monetary policy at a conference on Tuesday, Vice Chairman Stanley Fischer hinted on CNBC that the Fed may raise rates twice this year. Other Fed members signaled only a gradual pace of tightening policy.

Investors are closely watching developments in Europe as Britain prepares to formally initiate a process to exit from the European Union.

Strong consumer data on Tuesday underscored the health of the U.S. economy despite doubts about President Donald Trump's ability to enact his agenda after the collapse of a bill to reform healthcare.
With an August target date set for a highly anticipated tax reform bill and no major economic data on tap, markets are likely to trade in a tight range on Wednesday.

Stocks moving premarket included Vertex Pharmaceuticals (VRTX.O) that jumped nearly 18 percent to $105.50 after its cystic fibrosis treatment succeeded in a late-stage trial.

Luxury furniture retailer RH (RH.N) soared 16 percent to $44 following a quarterly  profit that beat analysts' expectations.

Chipmaker Exar Corp (EXAR.N) was up 5.5 percent at $11.20 following a deal to be bought by Maxlinear for about $700 million. 

Dollar, stocks inch up as U.S. healthcare vote back on

The dollar recouped a little lost ground on Friday amid signs a delayed vote on President Donald Trump's healthcare bill would go ahead later in the day, though it remained unclear whether it would pass.

Investors regard the vote as test for the Trump presidency that could show whether it can muster the backing needed to push through fiscal measures central to its economic agenda.

European bourses were seen opening a shade firmer while S&P 500 futures ESc1 added 0.25 percent as investors dipped a toe back into risk trades after a week of wild mood swings.

Australia bounced back from a tough few days to be up 0.8 percent , while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was all but flat.

Japan's Nikkei .N225 added 0.8 percent, encouraged by a slight softening in the yen. A Reuters poll out on Friday also showed confidence among Japanese manufacturers rose for a seventh straight month to a three-year high.

Trump will get a second chance to try to close the deal with Republican lawmakers on dismantling Obamacare in a high-stakes vote on a new healthcare bill later in the day.

Some in the markets suspect a failure to pass the bill could endanger Trump's promises of tax cuts and stimulus so beloved by Wall Street and U.S. corporates.

Adding to the unease was a Reuters report that the Trump administration is preparing new executive orders to re-examine all 14 U.S. free trade agreements, including those in Asia, to aid American companies.

After falling sharply mid-week, Wall Street had lapsed into waiting mode on Thursday with the Dow .DJI down 0.02 percent. The S&P 500 .SPX lost 0.11 percent and the Nasdaq .IXIC 0.07 percent.

NASDAQ Analysis and Gold Update – Orderly Is the Theme

Good day everyone. We’ve got the markets modestly higher on the day, and still no signs of a reversal at this point following the negated sell signal from earlier last week. 

Oil’s up, gold’s up, the major indices are up. Actually, most sectors are up, ex biotech, which is getting a bit of a beating due to some bad news coming from Amgen.

We still like pharma and biotech long-term though, despite Trump’s rhetoric regarding the space recently, but he has quietly hinted at reducing the overly stringent red tape regulatory environment the FDA has become so popular for in recent years, so that should help the space on a long-term basis. We’re just not convinced quite yet the space is ready to roll.

Back to gold for a second. Provided below is a weekly chart of GLD, the primary ETF tracking the price of gold. As you can see, this week likely confirms some pretty nice railroad tracks. Meaning, last week’s down bar here was met with a complete retracement back to the upside, suggesting gold once again could be in for another sharp leg up.

This is assuming of course gold GLD closes at or above where it is so far on the morning.You can also see ever since December the precious metal has kept itself above its 3X3 DMA (blue line) on its weekly chart, at least up until the last few weeks anyway. However, the fact it has found its way back below it for a few weeks is all pretty normal.

As a matter of fact, we’d be very surprised if it doesn’t find its way back above it at some point over the next few weeks. That would put GLD somewhere above $118, and more importantly put it in position to stage another nice leg up.

Asian shares at 21-month highs, dollar soft on Fed views

Asian shares hit 21-month highs on Tuesday while the dollar and U.S. bond yields were on the backfoot on the prospect of a less hawkish than previously expected Federal Reserve policy trajectory.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 percent in its eighth consecutive day of gains with tech-heavy Seoul and Taipei shares hitting two-year highs while Hong Kong's Hang Seng scaled 1-1/2-year highs.

European shares are expected to open slightly higher, with spread-betters seeing a rise of up to 0.1 percent in Britain's FTSE, Germany's DAX and France's CAC.

Japan's Nikkei dropped 0.3 percent, weighed by financial stocks, which were hurt by lower U.S. yields and exporter stocks, which fell on the yen's gains against the dollar.

While Asian shares have been supported by signs of strong global economic growth, concerns about protectionism cast a shadow after financial leaders of the world's biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States.

Wall Street shares drifted lower on Monday as investors worried that President Donald Trump's plan to cut taxes and boost the economy could take longer than earlier expected.

"Any fiscal spending by the Trump administration will not come until August at earliest and probably much later. So any economic benefit of that will show up only next year," said a senior trader at a European bank.

In addition, sentiment was hurt after Federal Bureau of Investigation Director James Comey confirmed for the first time that the bureau is investigating possible ties between Trump's campaign and Russia.

Trump's budget cuts to domestic, aid programs draw Republican scorn

President Donald Trump's first budget outline, calling for a security-heavy realignment of federal spending, drew resistance on Thursday from his fellow Republicans in the U.S. Congress as many balked at proposed deep cuts to diplomatic and foreign aid programs.

Conservatives have plenty to like in the White House plan, with its 10 percent increase in military spending next year and beefed-up funding to help deport more illegal immigrants and build a wall on the border with Mexico.

But the gaze into Trump's priorities for the next four years proved too savage for many Republicans' taste, foreshadowing an intense battle between Congress and the White House over spending in coming months.

Although Republicans control both the Senate and House of Representatives, Congress holds the federal purse strings and seldom approves presidents' budget plans.

The administration asked Congress for a 28 percent, or $10.9 billion, cut in State Department funding and other international programs to help pay for a 10 percent, $54 billion hike in military spending next year.

"These increases in defense come at the expense of national security," said Republican Senator Lindsey Graham, who has not hesitated to take on Trump. Republican Senator Marco Rubio, who like Graham ran unsuccessfully for president in 2016, leveled similar sentiments, as did some prominent Republicans in the House of Representatives.

House Speaker Paul Ryan sidestepped reporters' questions about whether he supported State Department cuts, saying the White House blueprint was just the start of the budget process.

The budget also drew criticism internationally. The French ambassador to the United Nations, Francois Delattre, warned that cutting funding of global programs could fuel instability.

Analysis - Bets on gold hold ground even as Fed rate hike looms large

While an imminent hike in U.S. interest rates is putting a downdraft on gold prices, bullion's allure as a safe haven is likely to limit the downside, traders and analysts say, owing to uncertainties in the United States and Europe.

Gold slumped to a 10-month low in mid-December after rates were increased for the first time in a year, but gold investors don't appear to be as jittery ahead of the next Fed meeting and a near-certain rate rise on March 14-15.

The previous slide came also as equity investors cheered the election of U.S. President Donald Trump, but gold has since recovered about 7 percent on a lack of clarity on Trump's policies and worries about upcoming elections in Europe.

"With a more hawkish Fed, there is no incentive to chase gold. But, the disappointment potential on President Donald Trump is very high. The Congress will not give what he wants."

Higher interest rates make it less attractive to hold non-interest bearing gold, while a firmer U.S. dollar also makes gold more expensive for buyers in other currencies.

Gold has fallen about 5 percent from a three-month peak on Feb. 24 to $1,198 an ounce, but traders say the risks of a sharp technical fall have eased and expect physical demand to emerge in a band from $1,150 to $1,200 an ounce.

Oil executives cautiously optimistic about Trump policies

Oil executives cautioned it is too soon to gauge the impact of President Donald Trump's policy proposals on their businesses, but they are looking forward to hearing more about plans for energy regulation, trade and taxation.

Tougher environmental regulations under the Obama administration stymied energy infrastructure projects like the Keystone XL crude pipeline and Dakota Access Pipeline, and required automakers and refiners to spend more to reduce pollutants.

Spirits at the CERAWeek conference this year have been buoyed by higher energy prices after a bruising two years for the oil and gas industry. Crude fell by more than 70 percent from mid-2014 to early-2016 amid a global supply glut.

Pro-energy policies and regulatory roll-backs anticipated from the new administration could lure more investment to the industry, but so far the details of Trump's plans and a potential border adjustment tax remain unclear.

But he added, "It's too soon to say where the Trump administration is going to go on the long-term basis. We have to give them a chance to start articulating policy."

Formerly the head of LNG exporter Cheniere Energy, Souki was a high-profile supporter of Democrat Hillary Clinton, donating to her presidential campaign and the Hillary Victory Fund, a joint fundraising committee with the Democratic National Committee.