America First, Financial Markets Briefing
$SPY, $USD, $OIL, $USO, $USD, $CU
- WS-J reporting Monday that China could skip trade talks with US
Stocks in Asia opened the week under pressure after the latest US move to place a 3rd tranche of tariffs on Chinese goods, as USD holding its gains: US Dollar (.DXY) Index + 0.5% at 94.94,
Hong Kong and Shanghai led declines, with Japanese markets closed for a Holiday, after news that US President Donald Trump instructed aides to proceed with tariffs on about $200-B more in Chinese products.
Copper (CU) dragged industrial metals lower.
The S&P 500 Index finished flat Friday as financial and energy shares rose, while the benchmark 10-yr T-Note yield hit 3.13%.
- US Treasuries ended the week with losses across the curve.
- Yield Check:
- 2-yr +3 bpts at 2.78%
- 5-yr +3 bpts at 2.90%
- 10-yr +3 bpts at 2.99%
- 30-yr +3 bpts at 3.13%
Stocks in Asia had tried to bounce at the end of last week amid some signs the US and China will enter talks and calm trade concern. That was upset late Friday when President Trump gave his aides instructions to proceed with more tariffs despite his Treasury Secretary’s attempt to restart talks with Beijing.
The rumor is that China is considering declining The Trump Administration’s offer of trade talks later this month after this new calls for more tariffs on the nations goods.
Crude Oil has pared gains from Friday ahead of an OPEC meeting in Algiers. Russian and Saudi Arabian energy ministers met in Moscow at the weekend and both confirmed a commitment to stability in the Crude Oil markets.
This week’s US economic reports
- Monday: September Empire Manufacturing (consensus 23.0; prior 25.6)
- Tuesday: September NAHB Housing Market Index (consensus 66; prior 67) at 10:00 ET and July Net Long-Term TIC Flows (prior -$36.50-B)
- Wednesday: weekly MBA Mortgage Index (prior -1.8%); August Housing Starts (consensus 1229-K; prior 1168-K), Building Permits (consensus 1310-K; prior 1311-K), and Q-2 Current Account Balance (consensus -$103.30-B; prior -$124.10-B); and weekly Crude Oil inventories (prior -5.3-M).
- Thursday: Weekly Initial Claims (consensus 209-K; prior 204-K), Continuing Claims (prior 1696-K), and September Philadelphia Fed Survey (consensus 15.3; prior 11.9); August Existing Home Sales (consensus 5.37-M; prior 5.34-M) and August Leading Indicators (consensus 0.5%; prior 0.6%); and weekly Nat Gas inventories (prior 69 BCF)
Have a terrific week
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