Risk-on mood remains as Trump set to be impeached

Summary:

• House to vote on Trump impeachment

• US500 remains near ATH just below 3200

• FedEx shares to fall 6-7%

What some had thought would be a market moving event looks set to pass with minimal reaction with Donald Trump expected to become just the 3rd US president to be impeached later on this evening. Lawmakers will debate for six hours before two votes are held - one on each article of impeachment. While this is no doubt big news and will dominate the headlines later on, it doesn’t come as a surprise and therefore is unlikely to impact the markets. Furthermore, even if Trump is impeached it looks like it would take a near miracle for him to be removed by the Senate, due in part to the Republicans having a majority in the upper house but more because it requires a supermajority of more than two-thirds.  

US500 remains close to all-time highs of 3199. The region from 3184-3188 could be seen as possible support and unless this level is breached then the recent price action looks like a consolidation before another push higher. Source: xStation 

There’s a light economic calendar this afternoon with little of note from the US in general. Shareholders of FedEx will be watching the market open with interest however, with the stock expected to start sharply lower after a disappointing trading update. For the fourth time this year the firm have cut their earnings targets with the move from customer to competitor of Amazon a chief cause. The figures as compiled by Bloomberg were as follows: 

• Revenue: $17.3B vs $17.66B expected.

• Adjusted earnings per share: $2.51 vs $2.78 expected

• Adjusted operating margin: 3.9% vs 5.35% expected

FedEX shares are called to open lower by 6-7%. The market had been gaining in recent weeks but looks set to take a hit after a disappointing set of earnings. Source: xStation