The trade war is now the biggest risk to markets

global markets

London (CNN Business)1. Trade war: The 2019 market rally has been impressive. Now it faces a big obstacle: trade tensions.

The resumption of the trade war between the United States and China has surprised investors and hit global stocks. The S&P 500 shed 2.2% and the Dow fell 2.1% for the week after President Donald Trump followed through on his pledge to hike tariffs on Chinese goods worth $200 billion. China has said it will retaliate, though both sides are still engaged in negotiations.

Newsletter sign up

More than any other factor, trade has knocked back US stocks from recent record highs and has the potential to hurt stocks even more.

The big issue for the market right now is clearly the trade issue,

said Ed Yardeni, president of investment advisory firm Yardeni Research.

Back in December — the last time volatility was a major discussion — the market was sent into a panic over slowing economic growth, a hawkish Federal Reserve and unease of US-China relations.

Markets shot back up as those factors appeared to be addressed. The Federal Reserve under Jerome Powell adopted a wait-and-see approach and said it will hold interest rates steady. The global economic picture appeared healthier. And the Trump administration signaled it was moving toward a trade deal with China.

Read More

Are you enjoying the article? Join our community for even more!


Click Here

Related posts

France against EU-US trade talks unless Trump supports climate deal

Camila Coutinho

P&G’s Top Executives Address Signs of Recession, Trade War


Press release: Commemoration of International Women’s Day will celebrate individuals and activists who are finding innovative ways to advance gender equality


Leave a Comment