The collapse of the trade talks between the U.S. and China was the primary driver for stock market moves this week. Ongoing uncertainty over the Brexit negotiations was also a factor in market volatility as well as increased tensions in the Middle East.
Escalating tensions in the trade talks between the U.S. and China sent markets lower as President Trump threatened to enact a tariff increase on Chinese goods beginning Friday. When the U.S. followed through on its threat at midnight on Friday morning, stocks plunged as equity markets apparently had not been pricing in the fact that the deal could collapse so quickly.
The U.S. Federal Reserve was the primary driver for market movements this week as analysts awaited the release of the Non-Farm Payrolls report for April on Friday.
An outbreak of violence in Sri Lanka rattled markets this week as terror attacks during the Easter Weekend ripped through three churches and four luxury hotels, killing at least 290 and wounding nearly 500 more.
This week and next will be shortened holiday weeks due to the timing of religious holidays this year. With the release of the Mueller report, which found no collusion with Russia and no obstruction of justice on the part of President Trump during the 2016 Elections, American politics is likely to explode into chaos in the near term. The Democratic Party is almost certainly going to redouble their efforts to block President Trump’s legislative agenda at every turn now that the basis of their calls for impeachment has been essentially eliminated.
The U.K. received a reprieve from the constant pressure of coming up with a viable Brexit package this week when the EU gave it until October 31 to come up with a new plan. Conditions on the extension, however, mean that the U.K. must elect members to the European Parliament in May, or it will again be faced with the threat of a disorderly exit come June 1.
Brexit continues to be the top news story affecting volatility in all markets, followed by further apparent progress in the U.S.-China trade talks. President Trump now appears to be taking aim on Mexico as the next target of his tariffs, despite an economic agreement between the two countries earlier this year that has yet to be ratified.
1. The UK parliament voted no on Theresa May’s Brexit package for the third and final time this week, sparking a massive protest march by pro-Brexit supporters who sincerely want the UK to exit the EU in an “orderly fashion”. 2. The seasonally adjusted number of Americans filing initial claims for state unemployment dropped by…
The uncertainty surrounding Brexit continues to be a top news item to watch, particularly as signs increase that a global recession may be building up steam.
1. A catastrophic computer failure has unfortunately made it necessary to keep this week’s memo brief as we work to repair the issue. Below is a short synopsis of news events and the Friday- to-Friday closing prices for this week. 2. Brexit was the primary focus of most major news outlets this week as U.K.…
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