A look at the day ahead in European and world markets of Wayne Cole. Is it the dog that didn’t bark? That would be the question of Sherlock Holmes fans, given the total lack of market response to US President Donald Trump’s threatened doubling of steel and aluminum tariffs up to 50%. That policy shift with tweet came late Friday after the markets were closed, so there was an anticipation of an impact today, perhaps a decline in Canadian dollar, given the extent of their steel exports to the US, but the loonie is actually more firm against a broad softer greenback, while the European futures of a shade and wall are only a visual. This could be the taco -meme in action, as investors always adopt ‘Trump’s chicken’, although he leaves it behind with the new higher tariff that is supposed to come into effect on Wednesday. Then again, at the last minute Cliffhangers work well on the reality -tv. Negotiators of the European Union were not satisfied with this latest plot turn and threatened retaliation in return, while it was also known that the court case at the rates on April 2 added their ‘leverage’. Nor does Trump’s latest rhetorical attack on China seem to be working, with Beijing holding on to his guns. If Trump rely on a call from China President Xi Jinping to sort things out, he might wait a while at the phone. It was also a somewhat ironic secretary of the Treasury, Scott Bestent, who complains that China is holding back important products from the United States, as it was the US that started a trade war with the specific purpose of relocating Chinese imports. Federal Reserve Governor Christopher Waller, who spoke in South Korea, said rates mean that there is a disadvantage for activity and unemployment, and that the risks to inflation are upside down. Still, he was still optimistic about the chance of ‘good news’ interest rate cuts later this year, and cemented his place as one of the more dull Fed officials. Fed chairman Jerome Powell will speak later Monday, although it is limited to the opening of comments to an international financing conference. Key developments that could affect the markets on Monday: * Prices of the UK home, European PMIs, US ISM Factory Survey * Fed Chairman Powell give opening remarks at the Federal Reserve Board’s International Finance Division 75th Anniversary Conference, while Chicago Fed Goolsbee and Dallas Fed Logan in Q&A appear (by Wayne Cole; editing by Christopher Cushing)
Morning Bid Europe Tariff Plot Turn Losing their bite | Einsmark news
