020 7898 0500On Friday, Trump approved fresh trade tariffs of 25% on $50 billion on Chinese imports. China responded by saying it would immediately impose tariff measures that would cancel out the US tariffs. That really does beg the question as to what Trump stands to gain, as no reduction in America’s trade deficit can occur once the retaliatory measures are in place. As the news filtered through, the markets started to wobble as investors fear that as trade tensions escalate, and more retaliatory measures come into play, all economies around the world will suffer.
The University of Michigan’s preliminary consumer sentiment for June was released and came in above expectations at 99.3. It had been forecast to come in at 98.5 from 98 the month before. Industrial production shrank by 0.1% in May, while year-on-year, manufacturing production hit 1.7%.
There’s nothing of note due for release today, but tomorrow we will see building permits for May and on Wednesday we’ll see existing home sales for the same month. Fed Chair, Jerome Powell, will also deliver a speech in the afternoon.
