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.
After the Trump election victory, traditional, conventional politics and politicians have largely fallen out of favor. Middle-of-the-road ideas, proposals crossing party lines and common-ground platforms that once played a prominent role in many campaign playbooks have been replaced with a very different type of strategy.
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.
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.
In ancient Rome, interregnum was the term given to the period between stable governments when anything untoward might occur, and sometimes did – civil unrest, warfare between warlords, power vacuums and, finally, succession wars.
1. Economic data out of the U.S., China and Europe were primary factors for market volatility this week. The Non-Farm Payrolls report for February will be closely watched when it is released on Friday for further indication that the U.S. economy might be slowing. 2. The seasonally adjusted number of Americans filing initial claims for…