Breakfast Bites - Yields Higher, Markets Lower

Tariff talks are not a bluff; Fed's cut doesn't seem imminent; Brent Crude Supply forecasts

Rise and shine everyone

US Equity Futures seem to be realizing that the tariffs are not a bluff and there’s more to it than just what we’ve heard. Now we have 35% tariff threat on Canada, although the USMCA exception will continue to remain in place.

It is Friday, so end of week flows may balance out some of the early weakness we’re seeing.

Yesterday I talked about the targeting of Chinese trade, and today we heard from the South Korean President who basically said the same thing, i.e., the US is demanding that South Korea join efforts to ‘curb China’.

As far as US Equities are concerned, with US yields moving higher, we’re some pullback and this is likely to continue for a bit. Firstly, we’ve already entered the buyback blackout period - the period two weeks before earnings when companies have to stop buybacks.