It's a Trump-watching market. Two issues to regulate proper now

There are two huge issues to look at this week:

1) Trump’s subsequent tariffs

Trump has promised ‘reciprocal’ tariffs on Tuesday or Wednesday however they will not go into impact instantly. It isn’t clear precisely what he is after right here however the market response has been telling. Spoos gapped down 30 factors on the open however have been instantly purchased whereas the US greenback rally additionally largely reversed. Tariffs are more and more seen as posturing somewhat than coverage however we’ll watch for the small print and consider from there.

2) Congress

Politico was out with an attention-grabbing report late yesterday highlighting a number of the fault strains within the Republican get together round tariffs, tax cuts, deficits and different priorities. The quick reply is that none of it’s going to be simple and nothing may be taken without any consideration. It is robust to say what the market is pricing in however I might strongly argue tax lower extension is nearly-fully priced in … however there are dangers. The remainder of Trump’s tax lower want listing appears DOA.

What’s subsequent? Trump might be on Fox at round 6 pm ET and is later scheduled to be on a radio present.

This text was written by Adam Button at www.ubaidahsan.com.



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