What’s in Today’s Report:
- Tariffs and Valuation
US futures are modestly higher and most overseas markets were little changed to higher overnight as the latest announcement of tariffs on China were largely shrugged off.
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 year-end.
The tariffs go into effect sooner than expected but the 10% rate into year-end leaves plenty of room/time for constructive negotiations which is why global shares are trading “ok” today.
Today, the market focus will be dominated by the new tariffs and what’s next in the trade war. As far as other catalysts go, there is just one economic report: Housing Market Index (E: 67.0) and no Fed officials are scheduled to speak.
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