Morning Briefing Global Stocks

Morning Briefing Global Stocks

Morning Briefing Global Stocks


In Thursday’s very early briefing I said: DJIA at 25029.20, -1.50% has fallen exactly as expected and a fall below 25000 could open up further testing to 24800-24500 medium term setting the index up for the next strong leg in the continuing rally.

Then we saw what has been dubbed ‘The Trump Torpedo’ the US announced Tariffs on Steel and Aluminium, which prompted an outcry from various global leaders and it was an excuse for the risk-off bias to accelerate .

The Trump White House signaled a 25% tariff on Steel and a 10% tariff on Aluminium, starting next week.

EU’s Junker said that he strongly regrets US restrictions on steel and aluminium affecting the EU, which will react firmly to defend interests with a proposal for WTO compatible countermeasures Vs the US within the next few days.

The Canadian Trade Minister said any US tariff quota imposed on Canadian steel would be unacceptable.

Added to that

Fed Chairman Powell testified on the Semi-annual Monetary Policy Report before the House Financial Services Committee, in Washington DC.

He made the following comments: The US economy is near full employment but force participation and wage growth still have some slack. “More strengthening can take place in the jobs market before wage inflation”. He said that there is “No evidence the economy is currently overheating” and he would expect to see more wage hikes adding “That’s what we’re waiting to see”. He said that, in order to prolong the recovery, we believe “gradual” hikes are the best course of action and 4 hikes would be considered “gradual”.

S&P 500 sold off to 2670.00, with the DJIA down to 24533.0, as Gold moved up to 1320.20.

Currently, the US major market futures are mixed, trading at:

24,608.98 -420.22 -1.68% -3.57% +17.17% 3/1/2018
2,677.67 -36.16 -1.33% -3.06% +12.42% 3/1/2018
7,180.56 -92.45 -1.27% -0.83% +22.51% 3/1/2018

Have a terrific weekend.

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