The up and down gyrations in the equity markets continued. Markets opened weak on overnight news that President Trump was considering increasing the amount of tariffs to be placed on imports from China. Loses accelerated this morning after President Trump tweeted “China, which is a great economic power, is considered a Developing Nation within the World Trade Organization. They therefore get tremendous perks and advantages, especially over the U.S. Does anybody think this is fair? We were badly represented. The WTO is unfair to U.S.” The Dow Jones Industrial Average was trading at 24,317 before the tweet. An hour later the Dow had traded down an additional 235 points (0.97%) to 24,082.
March Nonfarm Payrolls increased by 103,000 versus consensus estimates of 175,000. February nonfarm payrolls was revised upward to 326,000 from 313,000.
The numbers were tepid and should alleviate concerns regarding four rate hikes by the fed in 2018. US Treasury bond yields fell after the news. The Ten-Year Treasury yield dropped from 2.82% to 2.77%.
Uncertainty continues to plague the markets. Are we in a trade war or not? According to Treasury Secretary Steven Mnuchin; no we are not. According to the markets; yes we are. Mnuchin downplayed the trade war wording, saying the President wants fair and reciprocal trade. This is the kind of uncertainty that has the markets confused.
|While I do think the U.S. should press trading partners for fair trade deals, I’m weary of President Trump’s bully tweets. Negotiate diplomatically and report the progress or lack thereof. Watching these gyrations in the markets stimulated partly by tweets makes me wonder if our economy and financial markets are really on sound footing.|
John Sherwood on 4/6/2018 2:08:14 PM
|ANOTHER BLOW OUT TRUMP HAS DESTROYED THE MARKET|
ERNEST REMUS on 4/6/2018 4:09:35 PM
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