Has the Tariff Storm Died Down? Temporary Calm in the Markets
Oleg Kalmanovich Markets Open Higher: Tariffs Temporarily Lifted
US Futures in the Green: #ES +1.3%, #YM +1.0%, #NQ +1.5%. The reason is the exclusion of smartphones, laptops and other electronics from the 145% US tariffs on China. This supported the shares of Apple (#AAPL, +4.06%), Tesla (#TSLA, -0.04%), JPMorgan Chase (#JPM, +4.00%), United Airlines (#UAL, +4.54%).
What the White House Said
Tariffs on electronics have been temporarily suspended to give companies time to move production to the US. However, Trump hinted that new duties on semiconductors could be announced this week.
Opinions and risks
China called the US decision "a small positive", but does not plan to negotiate with Washington.
Xi Jinping is going on a tour of allies, and the US will begin a trade dialogue with Japan on April 17.
Financial markets are waiting for Powell and Waller to speak, especially in the context of possible rate changes.
Focus on reporting
— Today, Goldman Sachs (#GS) will report for Q1 (forecast: $14.76 billion in revenue, $12.26 EPS).
— On Tuesday: Johnson & Johnson (#JNJ), Bank of America (#BAC), Citigroup (#C), United Airlines (#UAL).
JPMorgan Chase (#JPM) and Morgan Stanley (#MS) have already shown strong reports, but warned that tariffs could hurt M&A practices and profits.
What's important this week:
— US-Japan trade talks (17 April 25)
— ECB meeting (15 April 25)
— Fed speeches (15-16 April 25)
— China and UK macro data (17-18 April 25)
— 20-year Treasury auction (Wednesday, 16 April 25)
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