Trade wars are the dominant force - Westpac
Analysts at Westpac explained that the market concern about a potential trade war resurfaced in response to President Trump’s proposal to impose tariffs on a further $100bn of imports from China, which sparked more anger from Chinese officials.
Key Quotes:
"This seemed to be the dominant force for equities, with the employment report not a game-changer for the outlook.
US non-farm payrolls rose by 103k in March (vs 185k expected), compounded by a net -50k in revisions. The unemployment rate remained at 4.1% (vs 4.0% expected). But hourly earnings rose 0.3% (as expected and versus just 0.1% in Feb) for a 2.7% annual pace. Weather may have been a factor, and there surely was some payback from the outsized 326k gain in February.
Fed chairman Powell reiterated the Fed’s gradual path of tightening, noting risks to the economy were balanced. Current San Francisco Fed president and soon to be NY Fed president Williams supported three to four hikes in total this year, expecting inflation to exceed 2% during the next few years. Chicago dove Evans endorsed the gradual rate hike path."
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
