Moody's one-notch downgrade of US sovereign debt is latest worry for markets following the turmoil around tariffs. Reaction in US Treasuries market has long-term yields up more than 10 basis points on both the 10-year and 30-year bond from Friday's close. The long bond moved decisively above 5 percent and the 10-year is back above 4.5 percent. Reaction has been relatively muted in equities with S&P 500 futures off less than 1 percent. Dollar sinks versus major currencies, especially the euro, as sell-America trade returns, though much less dramatic than in Liberation Day episode.

Moody's is the last of the major ratings agencies to downgrade US debt, citing rising debt relative to GDP, and no credible plan to address it. Notably, a key US House of Representatives panel has advanced a bill to extend President Trump's 2017 tax cuts, which are likely to add trillions to the debt over the next 10 years. Prospects for the bill on the House floor remain uncertain given objections from a handful of Republicans but Trump generally gets his way with his party.

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.