President Donald Trump is due to give his State of the Union address tonight at 9pm ET. Futures rose slightly Tuesday morning as investors digested earnings data while many are eager to hear updates from the commander in chief on a number of topics.
“The speech is going to be closely monitored for an update on trade talks with China and border security, or more specifically the border wall,” reported Craig Erlam, a senior market analyst at Oanda.
Trump has reportedly threatened to declare a national emergency at the US-Mexico border in order to deliver his promise of a border wall and tonight’s speech could carry that message.
Having received a dovish stance from the Fed on trade between the US and China last week, US markets have advanced upwards over past few days. Bulls hope that Trump’s outlook on trade will align with the that of the Federal Reserve.
In addition to the US-China trade war, the President will also likely discuss the new trade deal between the US, Mexico and Canada. Another international topic could be an update on the next meeting between Trump and North Korean leader Kim Jong Un.
As with any major news event such as this, any surprises could shock the markets with a wave of volatility. Investors should be prepared and manage their risk accordingly.
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