The trade dispute is likely to continue to preoccupy investors. Last week, US President Donald Trump announced punitive tariffs on imports into the US against almost all countries. A further escalation of the conflict is likely to fuel recession worries.
From the perspective of the economic calendar, the coming days could be particularly exciting with the publication of new US inflation data. At the same time, investors are waiting for the start of the reporting season.
Dow Jones Industrial Average Index
Source: TradingView
Further escalation of the tariff dispute possible - investors fear countermeasures from key trading partners
Concerns about the unforeseeable impact of the trade dispute on the global economy are likely to continue to drive investors in the coming days. Last Wednesday evening, Trump announced large-scale tariffs on US imports and stoked fears of a recession. At the same time, investors are likely to fear corresponding countermeasures from key trading partners such as the EU. China recently retaliated with a counter-tariff of 34% on US imports.
On Wednesday, the publication of the so-called Fed minutes (20:00) could provide monetary policy clues. Investors are likely to scrutinize the minutes of the Fed's latest meeting accordingly.
Focus on US inflation data on Thursday: economists expect core rate to fall
Thursday is likely to be dominated by the publication of new US inflation data (14:30). Economists expect consumer prices to rise by 2.6 percent (compared to the previous month), after 2.8 percent in February. The core inflation rate is expected to rise by 3 percent in the same period (previously: 3.1 percent).
New US price data is also likely to provide some impetus on Friday (14:30). The so-called producer prices are expected, which could rise by 0.2% compared to the previous month, after (+0%) in the previous month.
Finally, consumer confidence from Reuters/Uni Michigan should also be of interest (16:00).
Investors likely to kick off the US reporting season: JP Morgan and Co in focus
On Friday, investors await the start of the US reporting season, which is traditionally delivered by the major US banks. In addition to JP Morgan, the figures from Wells Fargo, Morgan Stanley and the Bank of New York Mellon are expected. BlackRock also reports.
