Markets continue to focus on fallout from President Trump's trade war. Investors are watching to see if the president reaches a tentative agreement with China to suspend the tariffs for a month, as he has with Canada and Mexico. China has retaliated against US tariffs with a limited series of measures which appeared to leave open the prospect of a negotiated settlement. Investors are waiting to see whether the European Union will be targeted next, as the president has threatened.

Analysts continue to debate the most significant economic impact of widespread tariffs, if they are sustained. Markets increasingly favor the view that the trade duties would have more of a deflationary effect by slowing growth than they would tend to raise inflation. That is reflected in lower bond yields this week after the Trump trade threats issued over the weekend.

In scheduled economic events Wednesday, the US Treasury is scheduled to issue its first quarterly refunding announcement of the year at 8:30 am ET. Markets generally do not expect any change in the size of Treasury coupon offerings until the third quarter.

US ADP employment figures due at 8:15 am ET will attract attention as they are seen as the precursor to the Labor Department's official employment report due on Friday. ADP is expected to show a moderate rise of 153,000 jobs in January from December. Friday's nonfarm payrolls are seen up by a similar 158,000.

Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.

Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.