Highlights
US international trade figures have been attracting more attention than usual given the focus on tariffs. The international trade in goods and services report due at 8:30 am ET Tuesday is expected to show the deficit widened to $136.3 billion in March from $122.7 billion in February. That forecast incorporates a bigger than expected goods trade deficit already reported for March -- a huge $162.0 billion -- as imports surged on purchases of durable goods to front-run the price effects of tariffs.
A wider net exports deficit subtracts from GDP, which in turn left first quarter GDP down 0.3 percent in the advance report last week, which is sure to be revised as new trade data come in, among other components. The US trade account including both goods and services shows a narrower deficit given the US position as a service-exporting powerhouse. It will be interesting to see how US services exports hold up in months ahead as President Trump seeks to remake the global economy and as US trading partners decide whether they will continue to buy US services as before.
Tuesday is also the first day of the two-day Federal Open Market Committee meeting, with the results and press conference with Fed Chair Jerome Powell on Wednesday afternoon. Inevitably on Tuesday, markets will be on tenterhooks awaiting news from the Fed. No one expects any change in rates. There is a lot of focus on any comments from Powell on the policy outlook. Fed officials have taken in a batch of real economic data lately. That includes GDP and employment and a soft ISM manufacturing report last week, followed by Monday's better than expected ISM services report. Both ISM reports showed rising cost pressures of the sort that will give an inflation-wary Fed pause.
A wider net exports deficit subtracts from GDP, which in turn left first quarter GDP down 0.3 percent in the advance report last week, which is sure to be revised as new trade data come in, among other components. The US trade account including both goods and services shows a narrower deficit given the US position as a service-exporting powerhouse. It will be interesting to see how US services exports hold up in months ahead as President Trump seeks to remake the global economy and as US trading partners decide whether they will continue to buy US services as before.
Tuesday is also the first day of the two-day Federal Open Market Committee meeting, with the results and press conference with Fed Chair Jerome Powell on Wednesday afternoon. Inevitably on Tuesday, markets will be on tenterhooks awaiting news from the Fed. No one expects any change in rates. There is a lot of focus on any comments from Powell on the policy outlook. Fed officials have taken in a batch of real economic data lately. That includes GDP and employment and a soft ISM manufacturing report last week, followed by Monday's better than expected ISM services report. Both ISM reports showed rising cost pressures of the sort that will give an inflation-wary Fed pause.
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.
