Highlights
On a quiet day for scheduled news events, President Trump's latest announcements on import tariffs are commanding the market's attention. The president said on Sunday he would impose a 25 percent tariff on all imports of steel and aluminum, effective on Monday.
Last week he promised"reciprocal" tariffs on all US trading partners to match their tariffs on US goods. It was not clear which goods would be included here but the implication was that the charges would be across the board. Trump previously threatened tariffs against the European Union so markets are keen to hear what he has in mind. Trump has already imposed an additional 10 percent tariff on goods imported from China. He suspended his planned 25 percent tariff on all goods from Canada and Mexico, pending a review.
Separately, in scheduled economic news events, the Federal Reserve Bank of New York is due to release its survey of US consumer inflation expectations for January at 11 am ET. In its last report, consumer inflation expectations on a one-year horizon were flat in December from November at 3.0 percent and were down to 2.7 percent from 2.9 percent for five-year expectations.
Results of a similar survey of consumers conducted by the University of Michigan released on Friday showed a remarkable surge in one-year inflation expectations to 4.3 percent in the preliminary February reading from an already elevated 3.3 percent in January and 2.8 percent in December. The University of Michigan said consumers are worried about the impact of President Trump's tariffs on the cost of imported durable goods. It will be interesting to see whether this registers in the NY Fed report, which lags the University of Michigan by a month.
Last week he promised"reciprocal" tariffs on all US trading partners to match their tariffs on US goods. It was not clear which goods would be included here but the implication was that the charges would be across the board. Trump previously threatened tariffs against the European Union so markets are keen to hear what he has in mind. Trump has already imposed an additional 10 percent tariff on goods imported from China. He suspended his planned 25 percent tariff on all goods from Canada and Mexico, pending a review.
Separately, in scheduled economic news events, the Federal Reserve Bank of New York is due to release its survey of US consumer inflation expectations for January at 11 am ET. In its last report, consumer inflation expectations on a one-year horizon were flat in December from November at 3.0 percent and were down to 2.7 percent from 2.9 percent for five-year expectations.
Results of a similar survey of consumers conducted by the University of Michigan released on Friday showed a remarkable surge in one-year inflation expectations to 4.3 percent in the preliminary February reading from an already elevated 3.3 percent in January and 2.8 percent in December. The University of Michigan said consumers are worried about the impact of President Trump's tariffs on the cost of imported durable goods. It will be interesting to see whether this registers in the NY Fed report, which lags the University of Michigan by a month.
Definition
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.
Description
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.
