Breakfast Bites - EU tariffs weigh on market
Earnings season starts and CPI to be released on Tuesday
Rise and shine everyone
A few interesting developments over the weekend before we head into a busy week. President Trump sent letters threatening 30% tariffs on the EU and Mexico starting August first. The tariffs would be in addition to the sector tariffs that were previously discussed.
The Euro is holding up around 1.168 despite remaining in a downtrend from 1.18 since July 1st. Analysts suggest the limited downside may reflect the “TACO” trade, the belief that Trump will ultimately soften or negotiate away the tariff threat.
Markets traded lower on the tariff news but regained some ground. US equity futures are flat to lower, with bonds also flat. Asian and European equities are also somewhat lower, as tariffs continue to cast a shadow.
Bitcoin, on the other hand, surged to a new all-time high of $122K, with Ethereum, XRP, Stellar, and Solana also rallying ahead of this week’s US Crypto Week hearings in Washington, DC.
Earnings season kicks off this week, with many of the major banks reporting tomorrow, and US CPI numbers set to be released on Tuesday. We’re optimistic about earnings season, at least the early part of it, and the large caps. Tariffs will continue to be a focus but quite possibly to a lesser extent that before.