Treasury prices are lower this morning following a quiet overnight session for all financial markets (Europe, Hong Kong, and Australia closed for holiday), and U.S. equities are poised to open lower today. S&P 500 futures are currently down 9 points after China announced retaliatory tariffs of up to 25% on 128 different types of U.S. imports. The reaction from China was not a major surprise, but there is still some anxiousness from investors that a larger trade war will ensue.Ai??Continuing on the trade front, the tone surrounding NAFTA negotiations had improved markedly in recent weeks, but President Trump ratcheted up the rhetoric once again over the weekend with a tweet criticizing Mexico on its efforts to slow illegal immigration into the United States.
This weekai??i??s economic calendar is headlined by the March jobs report on Friday. Most market participants will again be more focused on the wage growth data within the report as it relates to further labor market tightening and general inflation pressures. Several Fed leaders are scheduled to speak this week, beginning with Minneapolis Fed President Neel Kashkari later today. Kashkari held a more dovish policy view for much of last year, and Fed Chair Jerome Powell will provide his economic outlook on Friday.
Jason Haley
Managing Director, Investment Management Group
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