All quiet on the trade front?

Jan 30, 2020 | Jay Zhang


Markets breathed a collective sigh of relief as long-hoped-for trade deals have been hammered out. But we think the recent developments are no panacea. The shifting trade winds have not completely blown away the fog of uncertainty, and we look at how

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With the MSCI World Index reaching new all-time highs in the last three months, one can be forgiven for concluding that recent trade agreements will usher in a much improved environment over their predecessors. In fact, global trade volumes are unlikely to revert to their previous heights and the deals could even hinder economic growth.
But markets have been relieved that the risk of a full-blown trade war has receded, and they have been driven by the hope that the lifting of trade uncertainty will help generate modest, if not significant growth. We look at the real economic impact four trade situations may have, and the implications for equities.

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