January 18, 2019 2:00 p.m. A Possible Easing of Trade Tensions is Today's Market Mover -by- Lester Murray
The prospect of at least a partial resolution to America's trade squabble with China has buoyed investor sentiment and provided a shot-in-the-arm to equity investors looking for good news. Reports from the Administration hinting at cutting or maybe lifting some of the tariffs placed on Chinese imports has created the prospect of a possible end to the ongoing trade war.
John Williams, New York Fed President, joined the growing list of FOMC members suggesting that a pause in rate hikes is appropriate and will allow the Committee to reassess conditions. His remarks to the New Jersey Bankers Association stressed the importance of making sure that any Fed actions are data-driven.
Bond yields have edged up slightly, but today's sell-off is pretty mild. At the moment, the Ten-Year is yielding around 2.78% with the Two-Year right at 2.60%.
A bit lost in the shuffle was news from the University of Michigan that its Index of Consumer Sentiment fell to its lowest level in more than two years.
Markets will be closed Monday in observance of Martin Luther King, Jr. Day.
Posted on Fri, January 18, 2019
by Lester Murray