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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