Tariff Concerns Weigh on Equities

Selling pressure kicked in on the European open
The E.U. is expected to announce a ban on U.S. arrivals
Chicago and St. Louis Fed presidents speak today
Equity Index futures

Equity Index futures

Tuesday's Close

E-mini S&P 500 Futures (September): Settled at 3118.50, up 7.75

E-mini Nasdaq-100 Futures (September): Settled at 10,196, up 71.25

After a soft finish yesterday, selling pressure kicked in on the European open due to reports the White House is considering additional tariffs on the E.U. and U.K. The spat is largely tied to the allegiance each nation has to their respective aircraft makers and subsidies (Airbus and Boeing).

Risk sentiment had already found itself peeling back from yesterday’s early exuberance as fresh virus cases stack up across the U.S. Additionally, the E.U. is expected to announce a ban on U.S. arrivals due to the resurgence in cases. Still, markets are holding it together and volatility is the new normal. Aiding such are comments from U.S. Treasury Secretary Mnuchin as he reminds market participants the White House is weighing fresh fiscal measures.

On the economic calendar, data out of Germany showed renewed business optimism. It is quiet in the U.S., but we look to comments from Chicago Fed President Evans at 11:30 am CT and St. Louis Fed President Bullard at 2:00 pm CT. There is a 5-year Note auction at noon CT.

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