By Vikram Subhedar
LONDON Jan 11 World stocks and the dollar rose
before a news conference by U.S. President-elect Donald Trump in
which he is expected to give more details about his plans for
the U.S. economy.
Trump's campaign calls for tax cuts and more infrastructure
spending have boosted U.S. shares and the dollar, but his
protectionist statements and a flurry of off-the-cuff Tweets
have kept many investors from adding to risky positions.
The UK's FTSE 100 was poised for a record twelfth
straight day of gains while European shares rose 0.2
Stock futures on Wall Street were 0.1 percent firmer
though the post-U.S. election rally is showing signs of running
out of steam.
Trump has vowed to label China a currency manipulator on his
first day in office on Jan. 20 and has threatened to slap huge
tariffs on imports from China.
U.S. House of Representatives Speaker Paul Ryan and top
members of Trump's transition team are discussing a
controversial plan to tax imports.
Economists have warned that protectionist measures could
stifle international trade and hurt global growth.
That brings Trump's press conference, scheduled for 11:00
EST (1600 GMT), into sharp focus.
"From a currency perspective, markets will aim to get a
clearer picture on trade, fiscal stimulus and the new
administration's relationship to the Fed," Morgan Stanley
strategists wrote in a note to clients.
The dollar inched higher against the yen on Wednesday
but was 0.4 percent firmer against the basket of currencies
used to measure its broader strength.
The dollar has gained broadly since Trump's election in
November as investors bet he would boost public spending and
spur repatriation of overseas funds by U.S. companies as well as
higher inflation and interest rates.
But more doubts have emerged in recent weeks about that
narrative, and investors will have a close eye on what the new
president says about trade and relations with China.
Bank of America-Merrill Lynch strategists warned on
Wednesday that a worrying consensus has developed in financial
markets with analysts and investors overwhelmingly bearish on
bonds and positive on developed market stocks, financials and
the U.S. dollar.
Sterling meanwhile edged towards a 10-week low
against the dollar on Wednesday, kept under pressure by fears
that Britain will undergo a "hard" exit from the EU in which
access to the single market will play second fiddle to
The Turkish lira fell to new lows despite efforts by the
country's central bank to support it with pressures piling on
An auction of German debt was expected to go down well with
investors looking for safe havens. Portuguese yields held near
11-month highs as the country prepared for its toughest bond
sale in years.
In commodity markets, oil rose, lifted by reports of Saudi
supply cuts to Asia, but gains were capped by a lack of detail
about the reductions and because of signs of rising supplies
from other producers.
Prices for Brent futures LCOc1, the international benchmark
for oil prices, were trading at $53.94 per barrel at 1200 GMT,
up 30 cents from their previous close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
at $51.11 a barrel, up 29 cents.
(Editing by Hugh Lawson and Toby Chopra)