Investment Strategy

Mirabaud
By December 11, 2018 11:13

Investment Strategy

The truce in the trade war – agreed by the US and Chinese presidents in a meeting on the sidelines of the G20 summit – bodes well for an equity-market rally in December. The USA has agreed not to raise customs duties by 10-25% on $200 billion of Chinese imports on 1 January 2019, in return for a commitment by the Chinese government to import substantial amounts of agricultural goods, oil, gas and industrial goods in order to reduce China’s trade surplus with the USA. However, the truce has been agreed for only three months, during which time progress must be achieved in the areas of intellectual property and forced technology transfer. Although the agreement is a relief, it does not spell the end of the trade conflict. It will also focus uncertainty on the end of the first quarter of 2019, when the US debt ceiling will be reinstated.

Mirabaud
By December 11, 2018 11:13

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