What matters in the United States and global markets today
Written by Mike Dolan, editor, man, financial industry and financial markets
It is Friday, so I will present today a quick overview of what is happening in the global markets and then we offer you some suggestions to read the weekend away from the main headlines.
Market accurate today
* On Thursday, US President Donald Trump threatened to manufacture a 200 % tariff on wine, cony and other alcohol imports from Europe, and opened a new front in a global trade war that resulted in roaming in financial markets and raised recession concerns.
* The Senate Grand Democrat at the Senate Chuck Schumer said on Thursday that he would vote to pay the Stopgap bill for the Republicans, indicating that his party will provide votes to avoid the closure of the government.
The Italian Bank said on Friday that the European Central Bank has granted UNicredit approval to buy up to 29.9 % of COMMERZBANK.
* German advisor at Friedrich Mirz urged the skeptical legislators on Thursday to support his proposals for a huge increase in the state’s borrowing, and to frame them as a test for Germany to stand on the world stage and protect European security.
* The Chinese Hong Kong Affairs Office and the Macau Affairs Office have re -commenting, which criticizes the CK Hutchison Port deal with the American company Blackrock as betrayal in China, where the shares of a group of Hong Kong group sent its headquarters.
Closing
On Thursday, the S& P 500 recorded a 10 % technical correction of the last time for the first time since 2023, but it may get some relief at the end of the weekend incentive from signs that the United States government partially closing it may be avoided.
With losses of more than 4 % for the week until Thursday, the S&P 500 was in its path for the worst week in two years, but the futures were wore overnight as it seemed that one of the multiple clouds attached to the market may pass after the bell.
The Senate Democrats of the Senate in the United States said he would vote to pay a Stopgap bill for Republicans, indicating that his party will provide the necessary votes to avoid the closure of the government before the deadline midnight on Friday.
But the risk of partial government closure was just one of the uncertainty that weighs on stocks, which includes an escalating global trade war and is afraid to grow in a rare contraction in the economy.
With a few major economic updates this week and the latest policy meeting in the Federal Reserve next week, the markets are likely to focus today on the latest investigation of the University of Michigan on consumer confidence.
It seems that economic tensions undermine investment confidence exceeding shares, as high -yielding bond risk installments have expanded from their last low levels without further declines in standard treasury revenues.
The so -called unwanted escape is called the corporate bonds index in sub -investment to its widest in more than six months to 340 basis points on Thursday, as high -yielding fluctuations are the highest levels since November 2023.
Abroad, the stock indexes acquired a break on Friday with the stability of the future of Wall Street, despite the ongoing losses in some sectors in Europe cautious about the upcoming American definitions.
Chinese main land shares have jumped over 2 % on the hopes of fresh home stimulation. China’s financial organizers urged institutions to enhance support for consumption, and in a statement on Friday he promised to relax consumer credit shares and loan conditions.
Meanwhile, the dollar rose above, and the gold rose to another record.
Weekend reading suggestions
Here are some articles away from the daily addresses that you may find interesting.
* The former reserve bank coach and the chief economist in IMF, Rajhur Rajan, takes the mission to be in a post in the project union and asks whether the Trump agenda is worth it if the price is “America’s concession”.
* The International Finance Institute in Washington takes a look at Trump’s policies today and fears the sustainability of the American debt track, while showing its models walking long distances or spending discounts for more than 2.5 % of the gross domestic product needed to install the ship.
* The voter regret? Reuters shows how to bring in Trump’s supporters.
* The bank for the international review of the quarterly settlements cars this week spoke about the risks facing markets and economies due to “definitions wrapped in uncertainty” and “the race between the path of growth and the debt track”.
* The Central Banking Magazine Prize for this year for economic research at Central Banks goes to Adrian, Boyarchnko and Giannone for their work on “exposed growth at risk” models and the use of measuring financial conditions to predict the contraction.
* With the transformation of the European defense and financial procedures this year and the defense shares have risen, Reuters correspondents show the number of European money managers who are reviewing ESG policies to find ways to participate in this shift.
* Meanwhile, Tom Anders, former Airbus president, urges Europe to prepare for the worst by driving the race to build armed robots.
* The chaotic world is turning to restructure sovereign debt and “hateful debts” into Syria, and the Peterson Institute for International Economy Ednan Mazari explains.
* Speaking of “hateful debts”, some financiers are studying what may happen if those who have a savings campaign in the US Treasury consider the long -term British debt to America from the First World War.
* When the world has been looking back five years ago since the epidemic, many are still affected directly, as Emma Patha of Thomsonreutors with the “British family” feature explains jobs to care for children with long coffee. “
Today’s scheme:
Next week, it brings a sweeping process for the major central bank meetings, which is usually held by global markets in Thial. But the size of uncertainty in American policy and a global trade war is revealed, meaning that the monetary mitigation last year has most likely stopped with the transfer of central bankers to the side lines and the consideration of the repercussions.
Today’s events to watch:
* Michigan University, consumer morale survey. January Manufacturing sales Canada
* The European Central Bank Board of Directors speaks Piero Cipolline
* American companies’ profits: Hudson Global, drilling tools, Weide, Gogo
* The Secretary -General of NATO Mark Retty in Washington
(Posted by Mike Dolan, Editing by Anna Sizymanski; Mike.dolan@thomsonreutters.com)
