Trade Tensions Re-Emerge as a Market Concern
After navigating last week’s series of central bank meetings from around the globe, the market will be dealing with a re-emergence of global trade fears as the back and forth over tariffs heats up once again between the U.S. and China.
Last week, the Federal Reserve raised interest rates by 25 basis points (bps) and indicated it would most likely raise interest rates twice more in 2018. Stocks have recently been dealing well with the talk of higher interest rates. The S&P 500 is approaching the highs seen in January, and the NASDAQ is near its all-time high. The biggest concern coming out of the Fed meeting is that the yield curve, or difference between short and long term interest rates, continues to shrink, indicating potential concerns about future economic growth.
The coming week is relatively light on economic data, but the noise from trade conflicts will likely move markets. Another wild card this week is the OPEC meeting Friday, where a difference of opinion about increasing output has emerged.
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