US Hikes Tariffs on Chinese Goods in the Midst of Talks

Today, the US officially raised the tariff rate on USD 200bn of Chinese goods, in the midst of trade negotiations between the two sides. The market reaction was subdued, with investors perhaps eager to find out whether the talks will yield anything positive today. Yesterday, the Norges Bank kept its forward guidance unchanged and added that the next rate increase is likely to happen in June. As for the economic data, today’s agenda includes the 1 stestimate of the UK GDP for Q1, the US CPIs for April and Canada’s employment report for the same month.