Thursday, December 12, 2019

stock market 12/12

Markets are in a holding pattern ahead of President Trump's decision on a fresh round of tariffs that are set to go into effect Dec. 15 on roughly $156 billion of Chinese goods. The Wall Street Journal reported earlier this week that negotiators on both sides are working to delay the levies. The tariffs, which threaten to deepen China's economic problems and prompt retaliatory action, could also weigh on prices of cellphones, laptops and apparel for American consumers.

"People are just sort of trying to read the tea leaves of whether the relationship is improving," said Emiel van den Heiligenberg, head of asset allocation at Legal & General Investment Management. The market may be too optimistic in its view that the tariffs will be pushed back, he said.

Later in the day, investors will get a sense of the approach European Central Bank President Christine Lagarde is likely to take in her new role when she holds her first public briefing following a rate-setting meeting. The ECB is widely expected to keep interest rates at minus 0.5%.

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