Markets
- Gold up $16 to $2876
- US 10-year yields flat at 4.48%
- WTI crude oil up 40-cents to $71.40
- S&P 500 futures up 17 factors
- Nikkei 225 up 0.1%
- USD leads, CAD lags
For a second there, I believed we’d have a quiet begin to the week for the primary time in awhile.
After all, tariff man invited the press corps onto Air Power One and held and impromptu press convention the place he introduced metal/aluminum tariffs on everybody and stated reciprocal tariffs had been approaching Tues or Wed.
That kicked off the same old USD rally however to this point it has been much less that you simply would possibly anticipate. The euro is down simply 15 pips on the day whereas AUD/USD recovered utterly from a 40-pip decline.
There’s little doubt the metals tariffs are coming however the market is skeptical about the remainder. Trump made a handful of different feedback that can reverberate as properly, together with some cryptic feedback about Treasury debt that will not exist.
China floated some recent tariffs within the WSJ however that had little impact as Chinese language shares continued to climb. Gold additionally discovered a pleasant bid to start out the week because it lastly will get some mainstream consideration.
US S&P 500 futures opened 30 factors decrease however the patrons arrived virtually instantly, bidding it again to flat after which up 16 factors. Once more, that is an indication that the market does not suppose Trump is critical about tariffs or that he does not have the authority.
There was loads of distraction to start out the week because the Superbowl unfolded within the US. The sport was a dud with Philadelphia cruising to a win and a lackluster half-time present.
