"It's quiet, a little too quiet".
From Marc Chandler at Bannockburn Global Forex:
There are many moving pieces and Japan’s finance minister call for market calm seemed to help. Japan’s 30- and 40-year yields fell around 15 bp today after yesterday’s surge. There is a fragile calm in the capital markets today, and the dollar is mostly consolidating against the G10 currencies. Meanwhile, President Trump will speak at Davos shortly. Also today, the Supreme Court hears the appeal of the president’s attempt to dismiss Federal Reserve Governor Cook.
In an episode that seems to capture the spirit of the American exceptionalism embraced by the Trump administration: Treasury Secretary Bessent, who alongside the Commerce Secretary and Trade Representative sat in the front row of the court when it heard the case involving the president’s use of emergency powers to implement the widespread tariffs, chastised Federal Reserve Chair Powell for attending today’s arguments. Meanwhile, the Supreme Court may also give it verdict about those emergency powers.........Data
• The US reports September and October construction spending and December pending new home sales. However, the focus is on the Supreme Court. It is “decision day” and investors are anxious for the ruling on the president’s use of emergency powers to impose widespread tariffs and apparently will use that authority to slap an extra levy on several countries for objecting to his desire to acquire Greenland. Also, the Supreme Court hears the appeal on the president’s attempt to fire Federal Reserve Governor Cook. Fed Chair Powell will reportedly attend the arguments....
....MUCH MORE
