Stocks around the world drifted lower yesterday as investors appear to be nervous about the high-level trade talks that will take place between the US and China later this week. It will be hoped that some progress can be made when negotiators meet in Washington on Wednesday, especially given the deadline is the end of February – on 1 March, increased tariffs are set to come into play which would presumably have the opposite effect of calming tensions.
The only release of note from the US today is the consumer confidence reading for January. It is expected to fall a little to 124 from 128.1 the previous month. Tomorrow we will see the Federal Reserve’s first interest rate decision of the year. Rates are expected to be kept on hold at 2.5% this time around, but it will be interesting to see what policymakers have to say about fiscal policy throughout this year.
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