In the coming days, investors on both sides of the Atlantic are likely to be looking forward with great anticipation to the ever-closer deadline in the tariff dispute. Whether there will be a last-minute deal, such as the one between the US and the EU, remains questionable.
Even if the economic calendar is likely to be relatively quiet in the coming trading week, there could still be some important impetus from economic data.
As Wall Street remained closed last Friday for the holiday, the reaction to the latest customs uncertainty is likely to be particularly exciting on Monday.
End of customs deadline approaching - investors bet on last-minute deal between US and EU
Developments in the trade dispute between the US and major economies should be monitored closely in the coming days. This is because the official end of the tariff pause is within reach from July 9. After Trump announced numerous punitive tariffs on imports from some countries in the spring, the US president put them on hold for 90 days following corresponding turmoil on the stock markets.
Trump could introduce further tariffs of 50 percent from next Wednesday if the European Union does not make concessions in the trade dispute.
The tax bill recently passed by the US Congress, which was also waved through the US House of Representatives last week and signed by Donald Trump on Independence Day, is also likely to be a topic of discussion. The package provides for tax relief for the wealthy in particular, for example.
Publication of the FOMC minutes could provide impetus on Wednesday evening
In the middle of the week, investors should usually check the FOMC minutes for monetary policy hints (20:00).
Weekly initial claims for US unemployment benefits in focus on Thursday - Fed representatives have their say
On Thursday, for example, initial claims for US unemployment benefits are on the agenda (14:30). In addition, a speech by Fed member Alberto Musalem (St. Louis Fed) is expected (16:00). His colleagues Christopher Waller (Fed Governor) and Mary Daly (San Francisco/ 20:30) are also expected to speak.
Dow Jones Industrial Average Index
Source: TradingView
