Business Maverick: Investors See Trade Truce Giving Risk Assets Short Reprieve

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 67 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 84%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Business Maverick: Investors See Trade Truce Giving Risk Assets Short Reprieve By Bloomberg

Strategists and investors from Toronto to Singapore agree the outcome of a high-stakes meeting between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, alleviates the immediate risk of more tariffs in a dispute that has gripped investors for more than a year. They also worry that core issues of the trade war haven’t been resolved.

For analysts, the biggest breakthrough was the decision to allow Huawei Technologies Co. to buy some products from U.S. suppliers after the Commerce Department last month blacklisted the company for national security reasons. Despite global trade tensions easing, “financial markets are unlikely to significantly reduce their expectations for Federal Reserve rate cuts,” said Mansoor Mohi-uddin, a senior macro strategist at NatWest Markets in Singapore. “Thus risk assets — stocks, commodities and emerging markets — are set to rally while the safe-haven dollar, yen and Swiss franc underperform.

“We might see some short-covering from a few overzealous hedge funds, but overall, sentiment was neutral and nothing in this outcome is likely to give investors the confidence they need to raise their risk appetite.”“The lifting of ban on the sale of technology to Chinese companies was a step beyond expectations and the market reaction come Monday will likely be positive

The “reset button” being hit on trade talks was the markets’ base-case scenario, and this is supportive for risk, but the lack of a timeline for progress may cap “bullish topside ambitions” “Trump’s softer stance seems to be driven by U.S. corporate interests, as billion dollar contracts for US farmers and Huawei suppliers are involved”

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Glencore’s Congo tragedy highlights security conundrum for minersThe deaths of 43 illegal miners at a Glencore facility in Congo last week highlighted a growing challenge for mining companies struggling to secure sites from small-scale prospectors digging for cobalt, copper and other minerals.
Source: dailymaverick - 🏆 3. / 84 Read more »

Cathy Guetta is just my business partner, says Black Coffee | IOL EntertainmentThe superstar DJ dragged some Twitter users after he took to the platform to clarify that Cathy Guetta was in fact, not his ... Lad_Maezy _Lifestyle Yall bullied this man and his business partner, smh _Lifestyle Well please teach her boundaries 😕
Source: IOL - 🏆 46. / 51 Read more »