Trade tensions and mixed signals dominate the economic landscape
Week of August 11–15
This week, global markets reacted to a series of mixed developments. In the U.S., President Trump extended by 90 days the implementation of new tariffs on China, keeping the current 30% and 10% levels unchanged. July’s inflation came in slightly below expectations at 2.7%, driven by housing costs.
In Europe, German investor confidence dropped sharply amid disappointment over EU-U.S. trade talks and weak economic performance. Analysts expect the ECB to hold rates steady at 2%, marking the end of its current easing cycle.
In Asia, Japan’s producer inflation decelerated for a fourth month, while China posted soft data in retail sales and industrial production. In Latin America, Brazil announced a $5 billion support plan for local businesses, while Mexico highlighted a record trade deficit with China and a historic drop in poverty levels.
“Never invest in any idea you can’t illustrate with a crayon.” — Peter Lynch
KEY EVENTS NEXT WEEK
- U.S. Housing Starts and Building Permits → August 19
- FOMC Meeting Minutes → August 20
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