More uncertainty in an uncertain world

Daily update

There is yet more uncertainty in the US economy. US President Trump appealed the ruling that their trade taxes were illegal. While this is decided, the taxes stay. There are thus three layers of uncertainty. Will the taxes survive? If they are illegal, will US companies and consumers get refunds? And are trade taxes today actually being collected? There is also uncertainty around how US companies will react to this uncertainty, especially with pricing.
The US April personal consumer expenditure deflator is due today. It is too early to see the direct effects of trade taxes. The consumption data may start to show some payback after Democrat-leaning states front-loaded purchases of some consumer goods earlier in the year. Final May Michigan consumer sentiment data says little of itself. However, comparisons to the preliminary data suggest the evolution of partisan bias as Trump retreated from trade taxes.
German and Italian May consumer price numbers are expected to show disinflation forces remain in control. German April retail sales were technically below expectations, but significant revisions to past months (always common in Germany) has raised the level of consumer activity.
Japanese price and labor market data offered few surprises overnight. The level of industrial production in April was somewhat stronger than had been anticipated.