The biggest market mover this week was the Trump administration’s announcement that a trade agreement had been reached with Japan regarding tariffs.
https://abcnews.go.com/Business/trumps-trade-agreement-japan/story?id=123991644
International stocks (red) spiked higher on the news, followed by US stocks (green) and bonds (blue).
Next week, all eyes will be on Europe as the August 1st deadline for a trade agreement looms. If a deal cannot be reached before then, a sweeping 30% tariff on European imports will go into effect. That would trigger a European response on August 7th, with increased tariffs targeting American imports like Harley-Davidson motorcycles, poultry, jeans, bourbon whiskey, chemicals, cars, aircraft, and aircraft parts.
Although US stock prices are expensive by many historic measures, investors still seem willing to push markets higher as we get more clarity on trade and tariffs.
Have a great weekend.
Jack C. Harmon II, CFP®, CIMA
Principal, Harmon Financial Advisors
Registered Principal, Raymond James Financial Services
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