(Wednesday Market Open) As summer slides toward autumn and the latest batch of corporate earnings winds down, investors apparently are returning their focus to geopolitical concerns, with Turkey’s economy a focal point as tensions between the U.S. and key trading partners continue.
U.S. stocks seemed poised for a weak open following pressure on European and Asian stocks overnight. Major overseas indices fell almost across the board, and Asian stocks sold off aggressively, with China’s market taking another dip after some disappointing economic data. The Chinese market continues to struggle.
Moving west from there to Europe, the news continued to roll in on Turkey. In retaliation for the U.S. raising tariffs on Turkish steel and aluminum, Turkey has now doubled duties on some U.S. products. The move comes as worries about Turkey’s economic crisis spreading to other regions have pressured stocks in recent days. Those tensions lifted a bit on Tuesday but appear to be on the front burner this morning.
Separately, China has filed a complaint with the World Trade Organization over U.S. tariffs on solar panels. It’s the latest in a broad trade dispute between th
This morning, U.S. stocks appeared poised for gains, based on equities futures trading before the opening bell, as the Turkish currency gained some footing.
The new week could have a dual focus as investors closely monitor events abroad even as they watch retail earnings start rolling in at home.
The markets seem cautious Friday amid geopolitical concerns. A 13% decline in the Turkish lira this week and continued trade turbulence with China both appear to weigh on stocks.
The failed mergers might be one point of focus Thursday, and investors could also be watching inflation data.
A focus this morning appears to be $16 billion in Chinese goods that will be subject to a 25% U.S. tariff starting later this month.
This morning, investors appear to be focusing on momentum from a generally solid earnings season and letting trade talk simmer on the backburner.
The coming week might seem quieter after all the data and the Fed meeting of the previous week. But there’s still key inflation data on tap and some important earnings.
The July jobs growth presented mostly solid data if you look beyond the headline figure of 157,000 missing expectations. Trade with China remains a possible concern today.
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