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Trump rally keeps on truckin’: What you need to know before markets open

North American futures are edging up this morning, indicating that investors were still eager to buy into the post-election rally that has propelled a host of Wall Street indexes to record highs

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North American futures are edging up this morning, indicating that investors were still eager to buy into the post-election rally that has propelled a host of Wall Street indexes to record highs.

  • The “Trump rally” has been running for the past month as investors bet President-elect Donald Trump’s policies will boost economic growth and inflation. The three main U.S. indexes closed at record levels for the second day in a row on Thursday, while the small cap Russell 2000 and the Dow Transport hit all-time highs. Adding to the upbeat mood in the past weeks has been a spate of robust economic data, including on monthly hiring numbers, GDP growth and inflation, which have underscored the economy’s strength.
  • However, one spot of worry is valuations, with the S&P 500 is currently trading at about 17.5 times forward twelve-month earnings, above the 10-year median of nearly 15 times, according to Thomson Reuters StarMine.
  • The Canadian dollar is trading at 75.86 cents US this morning, up 0.05 of a cent from Thursday’s close.
  • A subsidiary of Fairfax Financial Holdings, one of the shareholders who helped keep Bank of Ireland out of state hands in 2011, is selling half of its remaining stake in the Irish lender, the bank managing the sale said today.
  • Data on tap for Friday is a preliminary reading of the consumer sentiment index for December, which is expected to hit 94.5 after rising to a 6-month high the previous month. The report is due at 10:00 a.m. ET.
    © Thomson Reuters 2016
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