Trade tantrum?

May 15, 2020 | Jay Zhang


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As if economies and markets didn’t already have their hands full, U.S.-China trade tensions have been rekindled. While it’s unlikely a new, full-blown trade war will be unleashed, the two rivals are likely to lock horns over the next few months. This

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Among the good news that many economies are starting to reopen or preparing to, President Donald Trump’s tough rhetoric toward China about COVID-19 and trade poses additional risks for equity markets. The U.S.-China rivalry, while never gone, had largely fallen off the radar of the corporate sector and investors alike in recent months.
Will it come back in full force like it did during the trade war? We doubt it, though we wouldn’t underestimate the possibility of missteps from either side, which could have serious ramifications at a time when the global economy is particularly weak. We reiterate our message to keep some powder dry.

 

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