Market movers today
Focus today will continue to be on the US-China trade tensions after the Trump administration revealed a plan for a 25% tariff on 1,333 Chinese products worth USD50bn and China immediately vowed to retaliate. It may be viewed as a slight relief, though, that Trump is targeting USD50bn rather than the USD60bn that was mentioned before, see more below.
On the data front the main release today will be Euro area inflation . In line with country figures released last week, we expect headline inflation to arrive at 1.5% in March, supported by a temporary rise in core inflation to 1.2% due to Easter effects. Despite the expected increase in March, we do not expect core to break above 1.3% in 2018, as underlying price pressure remains subdued and neither wage growth, which remains below its historical average, nor our 'super core' inflation estimate point to a strong pickup in core inflation in the near term.
In the US we have releases for ADP employment and ISM non-manufacturing in the afternoon and Fed's Bullard (non-voter, dove) speaks on the US economy and monetary policy at 15:45 CET.
To read the entire report Please click on the pdf File Below: