Tariffs and Valuation
Today, the market focus will be dominated by the new tariffs and what’s next in the trade war, late yesterday, the Trump Administration released the details of the next wave of tariffs on China: 10% on $200B worth of imports going into effect on 9/24/18 increasing to 25% at yearend and more.
Tariff Update (It Was an Important Weekend)
Today focus will be on whether the new tariffs are formally announced, futures are modestly lower, the WSJ had two important trade articles over the weekend. The first stated the Trump administration will implement 10% (vs. (E) 25%) tariffs on Chinese exports, while the second said if that happened, China would cancel the next round of trade talks. Asian markets dropped 1% on the combined stories, but European and U.S. markets are taking a “wait and see” approach and are down only marginally, and more.
Emerging Market Update (Positive Risk/Reward)
Emerging Market Update: Futures are slightly higher as Chinese economic data was mixed but didn’t contain any negative surprises, today focus will be on economic data, and specifically the Retail Sales report (E: 0.4%), as strong consumer spending remains a critical part of U.S. economic growth and more.
An Interview That’s Worth A Listen
Futures are slightly higher as China confirmed new U.S./China trade talks, economically, Japanese Machine Orders beat estimates, today the most important event is the Turkish Central Bank (TCB) decision, bottom line, U.S./China trade relations is more important than Turkey’s growing currency crisis, and more.
Question on Banks
Questions on banks: There were no material macro developments leaving US futures, the dollar, and global shares little changed overnight, investors were hoping to see better economic data in Europe rally, focus will likely remain on US tech shares and any trade developments and more.
Another Breaker Tripped
Another Breaker Tripped: Futures are modestly lower, today will be quiet from an economic standpoint, with tech shares showing signs of stabilizing so far this week, focus will remain on trade, emerging market currencies, and the dollar today and more.
The oil market seems more preoccupied
/in Investing, Reports/by Customer ServiceThe oil market seems more “preoccupied with the threat of an imminent physical-market deficit leading to regional supply shortages than easing geopolitical headwinds,” said Tyler Richey, co-editor at Sevens Report Research.