January 26, 2025 23:18 GMT
US TSYS: Opens Stronger After US Equity Futures Drop On Trump Tariff
US TSYS
TYH5 has re-opened at 108-18, +0-03 from NY closing levels.
- US stock futures have re-opened lower ahead of key earnings week, with the S&P 500 down ~0.50% and the Nasdaq down ~1%.
- “In a social media post on Sunday, Trump said he ordered an emergency 25% tariff on all Colombian goods coming into the US, which will be raised to 50% in a week. Oil, gold, coffee and flowers top the list of exports, according to Colombia’s tax authorities.” (per BBG)
- On Friday, US tsys finished mildly stronger.
- Surprisingly, the S&P Global US composite PMI fell in the January flash, showing its lowest since April, after 55.4 in December, which marked a 32-month high.
- However, firms' expectations of output over the coming year remain strong looking at policies under the second Trump administration. Inflationary pressures saw a four-month high which helped limit the dovish reaction from the headline services miss.
- Meanwhile, U.Mich long-run inflation expectations were trimmed in the final January release from what had been a particularly sharp increase to the highest since 2008. 3.2% is still elevated though, having twice in the past three months exceeded what had been a typical 2.9-3.1% range since mid-2021.
- Focus this week is the FOMC policy announcement on Wednesday.
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