The number one news on the financial markets today is, of course, President Trump bumping the tariffs on Chinese imports from 10 to 25%. However, there is more going on on the market today, so let’s take a quick look.
The stock markets have not reacted positively to the new developments in the China-US trade relations. The fears that a trade agreement between the two countries could fall through have caused a lot of pessimism among investors and stocks have gone down, especially in the United States. Chinese markets are somewhat more stable right now due to the fact that China is still open to negotiations.
Today we expect one of the most important economic reports from the United States, namely the consumer price index. An increase by 0.4% is forecasted by analysts and the YoY is expected to go beyond 2%. Lower numbers could indicate that the economy of the United States is slowing down more than the markets anticipated and will definitely affect the Federal Reserve’s decision-making.
