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Ahead of the President’s Day holiday on Monday, US investors seem to have just one particular president in mind – and their risk-off reaction to Donald Trump’s press conference yesterday are setting equity indexes up for a soft start.

Futures point to a sell-off as earnings season wind down and the reflation trade that buoyed global stocks to record levels start to lose steam.

Futures show the Dow Jones and S&P 500 dropping 0.35 per cent apiece to 20,520 and 2,337 respectively. The Nasdaq is also set to lose 0.22 per cent to bring it to 5,288, as the quarterly earnings season nears its conclusion and investors digest news of a possible mega-deal broached between consumer-goods giants Kraft Heinz and Unilever.

Overseas, the Nikkei and Hang Seng both closed lower, with the Dax down 0.4 per cent and the FTSE 100 ticking up a slight 0.13 per cent in afternoon trading.

The dollar is starting to regain some of the momentum it lost mid-week, with the dollar index – which measures the greenback against a basket of peers – up 0.14 per cent to hold at 100.64. And 10-year Treasury yields – which move inversely to their prices – reversed an early session rise by Friday morning, dropping 4.6 basis points to 2.4 per cent.

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