Stock markets rode out a second day of losses on Wednesday as protectionist rhetoric continued in Washington and February Retail Sales data disappointed. According to multiple U.S. media sources, President Donald Trump is eyeing tariffs on close to $60 billion in goods from China.
U.S. consumers continued to stay home in February, as confirmed by the drop in Retail Sales for a third straight month. However, income tax cuts and an improving job market should have a positive impact in March.
Larry Kudlow, Gary Cohn’s replacement as the White House’s National Economic Council director, had tough comments regarding trade with China in an interview with his former employer CNBC. However, Kudlow is pro-NAFTA and an advocate of trade with Canada. He also stressed that he favours a strong U.S. dollar and a U.S. economy with minimal regulations as a way to defend entrepreneurship.
This morning, with no major economic indicators on the calendar, calm has returned and the greenback and stock markets are up slightly.
Mark Donohue
Range of the day: 1.2900 – 1.3025