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Don't worry, be happy

| Posted by: Paul Donovan | Tags: Paul Donovan

Today offers more politics to distract the media. The Korean summit offers the hope of peace, but markets are unlikely to be that interested. Of more market importance is German Chancellor Merkel's hurried meeting with US President Trump. There is a risk that Trump will reverse the U-turn on taxing US consumers of European steel and aluminum.

Re-imposing taxes on European steel and aluminum matters to US markets as much as to European markets. US companies that use European steel would have to pay a higher price to buy domestic products they would not otherwise choose to buy. This will either damage US competiveness, or it will damage US profit margins.

Various first quarter GDP numbers are due out. The French data was weakened by weather and strikes, but it's still above trend. UK data may be missing some of the structural changes in the UK economy. US data is likely to be revised massively over the coming months and years. Investors should focus on the trends, and ignore anything after the decimal point.

Japanese consumer price inflation disappointed a little. Business and consumer sentiment numbers are due in Europe, and consumer sentiment is due in the US.