6d ago in General discussion
November 26 Stock Market Briefing
Good Morning Folks, Happy Tuesday!
The futures reversed overnight and are now pointing towards a higher open. Last night President-Elect Trump, who takes office on Jan. 20, said he would impose a 25% tariff on imports from Canada and Mexico, and an additional 10% on goods from China on 'day one,' until those countries clamp down on drugs, particularly fentanyl, and undocumented migrants crossing the border. The move would appear to violate a free-trade deal with both Mexico and Canada that he negotiated during his first term, but nonetheless the currencies of all three took a tumble overnight. China is particularly interesting because he has previously pledged to end China's most-favored-nation trading status and slap tariffs on Chinese imports in excess of 60%, much higher than those imposed during his first term. He did not mention Europe or Japan as part of the 'day one' plan, allowing the euro, which hit a two-year low on Friday, to hold on to Monday's bounce and the yen held up as well. ECB policymakers warned that the euro zone must be watchful to avoid inflation undershooting ECB's 2% target amid rising economic risks such as likely new U.S. trade tariffs that are "not good news for Europe." With another heavy schedule of Treasury auctions underway in a holiday-shortened week, speculation around the new administration's direction is pushing more regular economic monitoring to one side for now. That said, we will get some key reports today with Consumer Confidence and New home sales at 10am ET and the Fed Minutes from the last meeting at 2pm ET. No Fed members are on the speaking schedule today.
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November 26 Stock Market Briefing
