President Trump continued to re-escalate his trade war with major trading partners over the weekend. That makes it the market focus again Monday as all watch for the president's latest eruptions and how his targets respond. Trump has said equanimity in financial markets, with major stock averages reaching new records last week, shows investors are OK with his trade policy. The irony, of course, is that markets have shown equanimity on the expectation that Trump will chicken out. How will they react this week?

On Saturday, Trump added tariff threats against Mexico (30 percent) and the European Union (30 percent) to take effect August 1 unless otherwise modified through negotiations. The threats, contained in letters posted to Truth Social, scrambled the process of negotiations under way for months with both countries. As for Mexico, the letters did not make clear whether previous exemptions of goods, including agriculture products covered under the USMCA agreement, would still be exempted. Those exempted categories cover nearly 90 percent of all trade with Mexico. As for Europe, expectations expressed by EU officials had suggested a trade deal was imminent. The same expectation had been expressed by Canadian officials, only to be faced with a Trump threat of 35 percent tariffs, 10 percentage points higher than the previous threats.

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.