Markets Brace for Trump’s Davos Address
Comments from Treasury Secretary Bessent suggest Trump may de-escalate renewed trade war fears.
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President Trump is expected to speak Wednesday before the market open between 8:30 AM and 9:15 AM ET at the World Economic Forum in Davos, Switzerland. Odds are high that Trump will comment on recent geopolitical developments, and based on his comment yesterday that he has “a lot of meetings” scheduled regarding Greenland, we will be looking to see if there is any de-escalation of recent trade war comments in his address. If so, we’re likely to see the market breathe a sigh of relief and re-capture some of Wednesday’s decline.
In yesterday’s Portfolio Video, we discussed the potential for this, and if the last year has shown us one thing about Trump, he has a knack to go big with his ideas only to walk back or modify his initial proposal, subject to the original proposal’s reception.
There is reason to think we could see the president open the door to de-escalation at Davos, given the words uttered yesterday by Treasury Secretary Scott Bessent. While European officials were exploring retaliatory measures if Trump follows through on his latest tariff threat, Bessent’s words to them were “Sit back, take a deep breath, do not retaliate.”
Now to see what Trump says later this morning and go from there.
