US markets look set to open up today after the extra tariffs were imposed by the US and then China retaliated as expected. We also see the USD weakening and US 10yr bond yields are at 3.00% close to recent range highs. The weakening currency will help the emerging markets and commodities.
New tariffs of 10% have been added to USD 200 bn of Chinese products until the end of the year , at which time the tariff rate will move up to 25% , and now with a further threat of new tariffs on an extra US$257 bn of products. Analysts believe that the current situation should have a limited effect with some companies that operate in the Chinese economy to see reduced earnings and a small increase in inflation numbers may change the timing of further rate rises.
Latest prices show:
Dow Jones 26094 up 30 / S&P500 index at 2892 up 3 / Nasdaq 100 index at 7446 up 12.
EUR 1.1708 up 25 / GBP at 1.3157 flat / JPY at 112.22 weaker by 37 / DXY at 93.93 down 15.
Gold 1201.80 up 0.80 / 14.175 up 9 / WTI Crude Oil at 69.50 up 58.
US10 at 3.00%.
No economic data due today.