2d ago in General discussion
November 27 Stock Market Briefing
Good Morning folks, happy Wednesday!
The futures are indicating a slightly lower open as trade tariff jitters are replaced by inflation angst as the Federal Reserve gets another price check in the form of their favored report on inflation, the PCE report which will be released at 8:30am ET. With trading thinning this week ahead of what will effectively be a four-day Thanksgiving break, stocks are still feeding off assumptions about the extent of Trump's agenda of tax cuts, tariff rises and immigration crackdowns. There's also been some relief this week from a calming of the Treasury market, with yields retreating in a week of big debt sales, attributed to a mix of optimism about money manager Scott Bessent's nomination as Treasury Secretary and a fading of crude oil price following the Israel-Hezbollah ceasefire. Minutes from the Fed's post-election meeting this month showed policymakers divided over how much further they may need to cut interest rates from here, avoiding much guidance on the forward trajectory. Part of their uncertainty is the uncertainty of what the President-elect will do. Goldman Sachs shows a 25% tariff on U.S. imports from Canada, Mexico and China,- more than 43% of all U.S. imports, would generate government revenue of about 1% of GDP. But, by lifting the effective U.S. tariff rate by 8.6%, it would boost the core PCE price index by 0.9%. European markets are trading lower again on tariff uncertainty while Asia finished higher after data showed a less sharp decline in industrial profits, while traders placed bets Beijing will roll out more supportive policies to counter the risks of U.S. tariffs.
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November 27 Stock Market Briefing
