“Based on Justin’s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U.S. farmers, workers and companies, I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!,” said President Trump in a tweet.
President Trump’s administration has already imposed steel and aluminum tariffs on the European Union, Mexico and Canada—a move that could have implications, such as hampering global economic growth.
Bond ETFs Reacting
With the expectation that interest rate hikes are in store, traders are targeting bond funds for bearish plays on the market in the short term. As for the long term, Paul Tudor Jones, a hedge fund manager who accurately predicted the stock market crash of 1987, sees bond yields and stock prices increasing near the end of 2018.
“I think you’ll see rates go up and stocks go up in tandem at the end of the year,” said Jones. “I think we’ll see rates move significantly higher beginning some time late third quarter, early fourth quarter.”
As of 2 p.m. Eastern Time, certain bond ETFs are mixed as the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG) is up .01%, Vanguard Total Bond Market ETF (NYSEArca: BND) is down 0.01%, iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD) is up slightly at 0.05%, and iShares TIPS Bond ETF (NYSEArca: TIP) is down 0.02%.
For more bond-related news, check out the Fixed Income Channel.