Will Trade Conflict Impact U.S. Economic Growth?

June 25, 2018

Will Trade Conflict Impact U.S. Economic Growth? Photo

Last week saw global trade take center stage as concerns continued to build around the increasing trade conflict between the U.S. and China. I expect the start of this week will focus on China’s upcoming investment rules and speculation about what will happen before the July 5 effective date of tariffs.

On Friday, the markets will receive some key economic data with the release of the May Personal Consumption Expenditures and the University of Michigan Sentiment Survey. I expect both to show continued strength and optimism for the economy, as well as a small uptick in prices. After Friday’s 5% price increase due to concerns about OPEC’s follow through on production increases, keep a close eye on oil this week.

I expect the markets to end the second quarter relatively quiet, with stocks posting solid gains and bond yields inching higher.

Tags: Monday Morning O'Malley | OPEC | Personal Consumption Expenditures Index | Tariffs | trade tensions

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