Wrap

It appears that  Italy’s 2 leading political parties have set aside difference and are likely to form a new Government as early as tomorrow.Gone are Italian Worries but now replaced by trade wars.Canada said they will slap a Dollar per Dollar tariff on US goods,Mexico will place tariffs on Pork  and other food  products .The EU said they will retaliate with tariffs of their own but which goods is still to be determined.All Sides outside of President Trump say this is not a good Move.An EU trade Minister said that “Todays Steel tariffs  are a bad day for World trade”. Negative sentiment prevailed  especially for Export  driven sectors such as  Consumer Staples and industrials.Spoos tested the 2700 handle maybe looking for some stops below  but failed to find any and in turn bounced.

The rhetoric is harsh and Sentiment is sour but Canada  and Mexico need US consumers more than US needs them.USA is largest trading partner of both Canada and  Mexico so lets see who blinks first  in this  game of Chicken,The European Union is the Number one trading partner of the US with China Second.

Tomorrow payroll number is an afterthought ,unless something well outside of range of Expectations would occur it very well could be a non event

 

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