Upbeat music plays.
[Screen shows “Weekly Market Outlook with Jeffrey Kleintop”]
[Jeff holds up an illustration of a hairpiece labeled “Tariffs”]
From a big tariff deadline, the early impact of DOGE on the US jobs report, a rate cut in Europe, and signs of faster growth in China, I’m Jeff Kleintop with 90 seconds on what we are watching that could move markets this week.
On Tuesday, President Trump’s biggest tariffs, those on Mexico, China, and Canada are planned to go into effect after a delay a month ago. If he goes ahead, average U.S. tariffs would jump to rates not seen in decades. The longer they are in place the greater the risk to many U.S. businesses, inflation, and of course the economies of Canada and Mexico.
On Friday, economists expect a net gain of about 65,000 jobs
[Jeff holds up an illustration of an alarm clock labelled “Jobs”]
in February, down from 143,000 in January here in the U.S., along with a rise in the unemployment rate potentially impacted by President Trump’s executive order freezing Federal funding and hiring.
With inflation around 2% in the Eurozone, the European Central Bank
[Jeff holds up an illustration of scissors pointed at a percentage symbol labelled “Rates”]
is widely expected to cut rates by 25bp on Thursday. The market will be seeking any signs of a pause in the series of rate cuts in April. The market expects two more rate cuts this year, bringing the policy rate down to 2% by year end. We will also get a glance at the macroeconomic projections of the ECB’s staff with looming prospects for U.S. tariffs on import goods, on imported goods from Europe.
On Monday, China’s economic data is likely to show some improvement, particularly on the services side of the economy with a rise in housing transactions after the Lunar New Year holiday,
[Jeff holds up an illustration of a Japanese animation visage]
and partly by a one-off boost to spending from the success of the soon-to-be top grossing film of all time: Ne Zha 2.
Thanks for watching.
[Jeff holds up sign saying "Thank You"]
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