It’s a new week on the financial markets, but it’s going to be dominated by old worries, most notably the ongoing trade war between the United States and China. The two leading economies in the world were just beginning around round of negotiations on a trade agreement, when Donald Trump announced he wanted additional tariffs on Chinese exports to the US. In turn, China said they felt entitled to respond to the surprising negative measures against them. This soured investor sentiment.
This week we would receive data on both trade and inflation from China, which may be affected by the conflict, so keep an eye on that.
Central banks will also remain in focus over the next few days. Australia, New Zealand, and Norway will be deciding whether to adjust their interest rates. It is highly expected that New Zealand will lower interest rates again by 25 basis points. A softening of the monetary policy of Australia is also very likely.
The Federal Reserve is not done with the news. After last week’s rate slash, this week chief Fed officials will be giving speeches. Analysts will watch those closely, looking for a clue as to whether there would be another rate decrease in the near future.
