The US trade war will remain front and center on Wednesday with a new round of tariffs scheduled to take effect overnight on many US trading partners, including new levies totaling 104 percent on Chinese imports. News Tuesday that President Trump would proceed with additional punitive tariffs against China, and the expected Chinese retaliation, hit equities and other risk assets hard on Tuesday afternoon, and investors will watch the ongoing response in financial markets on Wednesday. Of course, investors will also watch hopefully for signs that expected US-Japan and US-South Korea trade talks may bear fruit.

Separately, investors will watch with interest the reception for Wednesday's US Treasury auction of 10-year notes for signs that global investors are less keen to finance the burgeoning US fiscal deficit. On Tuesday, the sale of US Treasury 3-year notes saw weak demand with the auction pricing a surprisingly large 2.3 basis points cheaper than where it was trading in the when-issued market at the 1 pm ET bidding deadline. Some observers have expressed concern about foreign investor demand for US Treasuries given a weakening dollar and rising risk associated with all US assets including relatively low-risk Treasuries.

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.