Are Tariffs A Bearish Gamechanger? Not Yet.
Are Tariffs A Bearish Gamechanger? Not Yet.: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Are Tariffs A Bearish Gamechanger? Not Yet.
- Weekly Market Preview: Tar War 2.0 and Key Economic Data (Including Friday’s Jobs Report)
- Weekly Economic Cheat Sheet: The “Big Three” Monthly Reports (Highlighted by Friday’s Jobs Report)
Futures are sharply lower (more than 1%) after President Trump made good on threats and placed 25% tariffs on Canada and Mexico in addition to an incremental 10% tariff on China, igniting another round of trade wars.
Economically, EU and UK manufacturing PMIs were slightly better than expected but both still were solidly in contraction territory, reinforcing EU and UK growth concerns.
Today could be a very busy day in the markets. Obviously trade rhetoric will dominate trading today and to that end, Trump has calls planned today with Canadian PM Trudeau and Mexican President Sheinbaum and obviously those headlines will move markets. Outside of trade drama, however, we get an important economic report, the ISM Manufacturing PMI (E: 49.5) and markets will want to continue to see Goldilocks readings close that are in-line or slightly weak.
In addition to trade drama and an important economic report, we also have two Fed speakers, Bostic (12:30 p.m. ET) and Musalem (6:30 p.m. ET) and their commentary on future cuts could also move markets.
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