Five Things to Watch in the Markets This Week
Investing.com – The week ahead is expected to be packed with a number of key developments, from US tariff policy to key economic data. US President Donald Trump could deliver a less severe tariff announcement than initially expected. Investors will also be keeping a close eye on political moves from Canada, ceasefire talks in Ukraine and a meeting between global CEOs and Chinese President Xi Jinping.
Trump’s Tariff Announcement Could Be Lighter Than Expected
Reports from *Bloomberg News* say that President Trump could announce new tariffs on April 2, but they could be more targeted. This could ease concerns about the negative impact of tariffs on US industries and friendly countries.
The Trump administration may exclude some countries with trade surpluses with the US from retaliatory measures, while not imposing industry-wide tariffs as initially planned, according to the report. However, Trump intends to impose tariffs immediately, which could lead to countermeasures from some other countries.
Upcoming PMI Data
Markets will be closely watching the US Purchasing Managers' Index (PMI) data, due for release next week. The PMI is expected to fall to 51.5 in March, from 51.6 the previous month, continuing to signal a slowdown in the US economy.
Meanwhile, investors are awaiting the report on the personal consumption expenditures price index, a key inflation measure closely watched by the US Federal Reserve.
Canada snap election
Canadian Prime Minister Mark Carney has called for a snap election on April 28 in a bid to secure a stronger mandate to counter the economic challenges posed by US policy. Relations between Canada and the US have been strained as Trump has threatened to impose steep tariffs on a range of Canadian products, including steel, aluminum and lumber.
Carney, who took over from Justin Trudeau in mid-March, has pledged to respond forcefully to Trump's moves but is also willing to work with the US to ease trade tensions.
Ukraine ceasefire talks
US and Russian officials have begun talks in Saudi Arabia on reaching a ceasefire in the fighting in Ukraine. The Trump administration is pushing for a deal to ease tensions in the Black Sea, where trade flows have been disrupted by the conflict.
US President Donald Trump spoke directly with the leaders of Russia and Ukraine this week, expressing hope that a ceasefire could be reached soon. However, some European officials remain skeptical that Russian President Vladimir Putin will accept the terms of a deal.
Global CEOs meet with Chinese President.
A host of CEOs from major corporations including Apple, Qualcomm and AstraZeneca are expected to meet Chinese President Xi Jinping next week at the China Development Forum. The meeting comes amid rising trade tensions between China and the US, with threats of new tariffs.
China is trying to attract foreign investment and boost domestic consumption to counter economic risks from the global trade war. Chinese Premier Li Qiang has called on countries to open their markets to help stabilize the global economy.