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GLOBAL MARKETS-Stocks and dollar firmer as Trump news conference approaches

Published 2017-01-11, 07:50 a/m
© Reuters.  GLOBAL MARKETS-Stocks and dollar firmer as Trump news conference approaches
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By Vikram Subhedar

LONDON, Jan 11 (Reuters) - 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 .FTSE was poised for a record twelfth straight day of gains while European shares .STOXX rose 0.2 percent.

Stock futures on Wall Street ESc1 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 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 (NYSE:MS) strategists wrote in a note to clients.

The dollar inched higher against the yen JPY= on Wednesday but was 0.4 percent firmer against the basket of currencies .DXY 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 GBP= 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 immigration controls.

The Turkish lira fell to new lows despite efforts by the country's central bank to support it with pressures piling on the economy. 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. 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)

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