Highlights
Monday's focus will remain on tariff chaos and fallout in financial markets. After the Trump administration's announcement late Friday that electronics, including chips and iPhones, would be exempt from the so-called reciprocal tariffs that are hitting China hardest now, investors might have breathed a sigh of relief, as these goods account for a good chunk of Chinese exports to the US. But lo and behold, Commerce Secretary Howard Lutnick, speaking on Sunday, said these items would be included in a separate set of tariffs probably in a month or two.
Investors will watch closely the ongoing market impact of Trump's policies and uncertainty over his policies in the week ahead. Focus will remain on US Treasuries and the dollar, which have faced disconcerting global selling pressure even as traditional risk assets like stocks and commodities have dropped. The notion has evidently diminished that Treasuries are risk-free and that US markets in general are stable and attractive. Financial stability hinges on how rapidly US yields continue to rise, what impact that has, and what the Federal Reserve and other central banks do about it, if it comes to it.
As a kind of afterthought, in economic data Monday, the Federal Reserve Bank of New York will issue its monthly report on US consumer inflation expectations for March at 11 am ET. The Fed report lags the University of Michigan survey which has already shown 1-year inflation expectations surged in March and early April. Still, it will be interesting to see if the NY Fed report confirms the remarkable jump in inflation expectations already reported by the University of Michigan. The last NY Fed survey showed inflation expectations increased by 0.1 percentage point at the one-year horizon, to 3.1 percent, and were unchanged at the three-year and five-year horizons at 3.0 percent in February from January.
Investors will watch closely the ongoing market impact of Trump's policies and uncertainty over his policies in the week ahead. Focus will remain on US Treasuries and the dollar, which have faced disconcerting global selling pressure even as traditional risk assets like stocks and commodities have dropped. The notion has evidently diminished that Treasuries are risk-free and that US markets in general are stable and attractive. Financial stability hinges on how rapidly US yields continue to rise, what impact that has, and what the Federal Reserve and other central banks do about it, if it comes to it.
As a kind of afterthought, in economic data Monday, the Federal Reserve Bank of New York will issue its monthly report on US consumer inflation expectations for March at 11 am ET. The Fed report lags the University of Michigan survey which has already shown 1-year inflation expectations surged in March and early April. Still, it will be interesting to see if the NY Fed report confirms the remarkable jump in inflation expectations already reported by the University of Michigan. The last NY Fed survey showed inflation expectations increased by 0.1 percentage point at the one-year horizon, to 3.1 percent, and were unchanged at the three-year and five-year horizons at 3.0 percent in February from January.
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.
