US markets are set to open slightly lower today after trade tensions continued to rise as it becomes clearer that President Trump is still keen to increase the tariffs on Chinese goods , while it is also considered likely that China will retaliate with its own list of tariffs. Markets are keenly waiting for any news about the levels of tariffs , with expectations set at a 10% rate.
Market prices are only slightly lower as markets also continue to not yet believe that these tariffs will hurt the US economy. This seems strange as Chinese stock indices are close to 25% down from the peaks while US indices are close to record highs. Bond yields are also ticking higher at 2.99% for 10yr while the US dollar has been weakening for most of this month.
No US data is expected to be released today , so if nothing comes out about trade then it should be a quiet session.
Current pricing is:
Dow Jones 26117 down 33 / S&P500 2901 down 3 / Nasdaq 100 at 7521 down 21
EUR 1.1675 up 54 / GBP 1.3135 up 66 / JPY 111.99 stronger by 8 / DXY at 94.17 down 34
Gold at 1198.30 up 5.20 / WTI Crude Oil 69.47 up 48 on Iran sanction concerns.
Daily Chart showing US Dollar Index futures - DXc1 - Breaking down from recent 14 month highs.