EU Retail Sales Down Sharply | China Urges Tariff Reduction as Deadline Looms
Published December 5, 2019
EU October Retail Sales dropped 0.6% in October, which is double the expected amount and its sharpest monthly decline of the year. EU GDP was only up a modest 0.2% in Q3, confirming that black clouds from Brexit and trade tensions continue to hover over the European economy. Despite the news, the euro is still stronger against the struggling US dollar today.
With 10 days left until the next round of scheduled tariffs are imposed, China is urging the US for proportional reductions in tariffs as part of a phase one trade deal. The Trump administration has not made it clear yet whether they will go through with tariffs and have continued to convey mixed messages to markets as a negotiating tactic. Market sentiment is expected to become more volatile the closer we move towards the December 15 deadline without any US concessions.
US Jobless Claims came in slightly better than expected, and markets are hoping it is a sign of things to come ahead of tomorrow’s Non-Farm Payrolls report. The US dollar has been battered to start the month, and tomorrow’s NFP will have major say in the direction of the dollar over the coming days.