Tom Essaye on Fox Business, August 29, 2018
Aug. 29, 2018 – 3:35 – Sevens Report Founder Tom Essaye discusses the S&P 500’s bullish run and the U.S.-China trade debacle.
Archive for date: August 30th, 2018
Tom Essaye on CNBC
“In March, we had four areas of trade uncertainty: Mexico, China, Europe and Canada. I think Canada will be resolved and Europe and Canada are already resolved,” said Tom Essaye, founder of The Sevens Report. “Basically, we’ve got three of four resolved, but China is a big one.”
Essaye also said he would be surprised if stocks keep grinding higher without a resolution to U.S.-China trade relations.
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Push on Trade – Tom Essaye on Bloomberg Radio
Tom Essaye, Founder, The Sevens Report, joined Bryan Curtis and David Ingles on Daybreak Asia to discuss the deal on trade with Mexico and the outlook for a resolution with China. He goes onto Fed hikes, how close they are to neutral and when the yield curve may invert.
Link to the Bloomberg site: Click Here
Five Catalysts to Determine the Year
What’s in Today’s Report:
- Five Catalyst To Determine the Year
- EIA Analysis and Oil Update
Futures are modestly lower as markets digest the recent rally.
Concerns about China (both trade and the economy) are the most cited reason for the mild dip this morning but nothing materially negative occurred overnight.
Economically, Japanese retail sales beat estimates (1.5% vs. (E) 1.2%) while Euro Zone Economic Sentiment slightly missed expectations (111.6 vs. (E) 112.0).
Today markets will be looking for any official news on Canada joining the U.S./Mexico trade deal (it’s not expected but possible).
Beyond those trade-related headlines, the most important event today will be the Core PCE Price Index (E: 0.2% m/m, 2.0% y/y) contained in the Personal Income and Outlays Report. Slowly accelerating inflation remains a key pillar in the bull thesis on this market, and if we see a core PCE Price Index materially above 2% (say 2.2% or higher) that will push the dollar and yields higher, and likely be a headwind on stocks.