Treasuries are little changed following a relatively quiet weekend from a headlines perspective, and S&P 500 futures are currently up 7 points in a continuation of Fridays positive price action. Last weeks US/China trade summit resulted in no major agreements, but Chinas Commerce Ministry softened the tone this weekend by announcing it is studying measures to further lower import tariffs on some food, pharmaceuticals, and medical instruments. Additionally, a Reuters article today highlights an interview between Chinas central bank governor Yi Gang and financial magazine Caixin, in which Yi said his countrys huge trade imbalance with the United States is a structural and long-term problem and should be viewed with rationality.
This weeks economic calendar is headlined by the April CPI report on Thursday. Last Fridays jobs report showed weaker than expected growth in payrolls and wages, but the headline unemployment rate fell to an 18-year low of 3.9%. Regarding the latter, the decline was more attributable to a lower participation rate, but the U-6 underemployment rate also fell to 7.8% (lowest since 2001). Fed Chair Powell will be speaking overnight at a IMF conference in Switzerland.
Jason Haley
Managing Director, Investment Management Group
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