Investing.com - Here are the top five things you need to know in financial markets on Tuesday, January 31:
1. Trump polices remain in focus
U.S. President Donald Trump will remain in focus on Tuesday as he plans to announce his nomination to the Supreme Court later in the day, a move likely to dominate headlines and perhaps delay the presentation of further details on spending policies.
He is also scheduled to meet with representatives of the pharmaceutical industry at the White House.
Meanwhile, Trump's immigration ban continued to rattle financial markets as the president dismissed acting U.S. Attorney General Sally Yates late Monday after she ordered Justice Department lawyers not to enforce the travel restrictions.
A group of technology companies, including Google (NASDAQ:GOOGL), Airbnb and Netflix (NASDAQ:NFLX), plan to meet on Tuesday to discuss filing an amicus brief in support of a lawsuit challenging the immigration ban.
The dollar was on course for its worst start to a year since 2008, falling around 2% against a basket of other major currencies, as concerns over the broader shape of policy under President Trump weighed.
2. Apple, Exxon earnings ahead
U.S. fourth-quarter corporate earnings season continues to gather pace on Tuesday, with majors such as ExxonMobil (NYSE:XOM), Pfizer (NYSE:PFE), Eli Lilly (NYSE:LLY), Aetna (NYSE:AET), Mastercard (NYSE:MA), UPS (NYSE:UPS), Sprint (NYSE:S), Coach (NYSE:COH) and Under Armour (NYSE:UA) all set to report ahead of the opening bell.
After the close, Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD), Electronic Arts (NASDAQ:EA), U.S. Steel (NYSE:X), Aflac (NYSE:AFL) and Anadarko Petroleum (NYSE:APC) are on tap.
U.S. stock futures pointed to further losses at the open on Tuesday morning, one day after equities suffered their biggest daily drop since mid-October, as concerns about Trump’s policies rattled investors.
3. U.K. lawmakers begin Brexit debate
British Prime Minister Theresa May's plan to leave the European Union is expected to survive an intense two-day debate in parliament starting on Tuesday, despite pro-EU lawmakers' attempts to force the government to rethink its strategy.
May's government is seeking approval for a new law giving her the right to trigger Article 50 after the Supreme Court ruled last week that she could not take that decision unilaterally.
According to a report in The Times newspaper, May will trigger Brexit proceedings on March 9, during a European Council summit in Malta.
The pound was down about 0.4% against the greenback at 1.2440, while London's FTSE 100 tacked on 0.5%.
4. Euro zone economic data adds to confidence
Investors found cheer in the latest round of economic news from the euro zone, with gross domestic product and inflation increasing and unemployment falling.
Eurosat said the region's gross domestic product in the fourth quarter was 0.5% higher than in the three months to September, and 1.8% higher than in the final three months of 2015.
A separate report showed consumer prices were 1.8% higher in January than a year earlier, the highest inflation rate since February 2013.
Figures also released Tuesday by the Eurostat showed the unemployment rate fell to 9.6% in December from 9.7% in November, its lowest since May 2009.
The upbeat data stoked talk of an unwinding of monetary stimulus by the European Central Bank.
The euro inched up 0.1% against the dollar to 1.0707, while European equities were slightly higher.
5. BoJ keeps policy steady while raising growth forecasts
As widely expected, the Bank of Japan maintained a pledge to guide short-term interest rates at -0.1% and the 10-year government bond yield to around 0%.
It also left unchanged a loose commitment to buy government bonds at the current pace so the balance of its holdings rise at 80 trillion yen ($705 billion) per year.
In a quarterly review of its forecasts, the BoJ raised its growth estimate to 1.4% for the current fiscal year ending March 31, from a previous prediction of 1.0% made in October, nodding to brightening prospects for exports.
The BoJ also said it expected inflation to rise to around its target of 2% by fiscal 2018.
The yen was little changed against the dollar at 113.77, while the Nikkei ended down 1.7%.