Photo: Reuters / Carlos Barria

Tuesday is shaping up to be perhaps the quietest market day globally since the election. Political risk in Europe narrowed a bit with peripheral bond spreads tighter against Bunds. European stocks are virtually unchanged, and American equity futures are flat.  Currency markets are close to unchanged, along with US Treasury bonds. The world is waiting for President Trump’s State of the Union address.

Asia Unhedged is inclined to agree with Apollo chairman Leon Black. Reports Javier Espinoza for the Financial Times, “Billionaire Leon Black has said that President Donald Trump’s plans to cut regulation and corporate taxes will ‘turbocharge’ the economy and that private equity is also set to benefit from the overall boost. Addressing an audience at SuperReturn, private equity’s global conference in Berlin, Mr Black said that, given eight years of growth, the ‘probabilities would say another down cycle is imminent’ but added: ‘I’m not sure that’s the case.’”