US Economy and Credit Markets Ended April 6, 2018

 
Treasury prices extended their rally over the past week pushing the yield on the 10-yr U.S. Treasury note below 2.75% on Friday. Treasury yields across the board continued to fall as global markets reacted to the continued threat of a trade war between the United States and China and a weaker than expected jobs report in the United States. President Donald Trump and policymakers from the Chinese government continued their banter over tariff propositions last week. China responded to the United States' tariff announcement by declaring $50 billion of its own tariffs on U.S. exports, targeting aircraft and agricultural products. The President threatened an additional $100 billion in tariffs on Chinese imports in response. The White House justified additional penalties by citing alleged violations of U.S. intellectual property laws; Bejing vehemently denied those claims. Nonfarm payrolls rose 103,000 in March, lagging the consensus expected 185,000. Despite the weaker jobs number, the tendency in recent years has been for March payrolls to come in below consenus expectations. Additionally, the weaker jobs number is coming off the back of an unusually strong uptick in February. Other major economic reports (related consensus forecasts, prior data) for the upcoming week include: Tuesday: March PPI Final Demand MoM (0.1%, 0.2%); February Final Wholesale Inventories MoM (0.6%, 1.1%); Wednesday: April 6 MBA Mortgage Applications (N/A, -3.3%); March CPI MoM (0.0%, 0.2%); Thursday: April 7 Initial Jobless Claims (230k, 242k); Friday: April Preliminary U. of Mich. Sentiment (100.6, 101.4).
Posted on Monday, April 9, 2018 @ 8:43 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.