Equity futures are selling off markedly this morning on Trump’s weekend China-trade tweets and China’s stated resolve.
The other (under-reported to this point) trade risk is this week’s deadline for the President to decide if he wants to raise tariffs on European cars.
Such a move would absolutely roil markets further, which, given last week’s declines, and this morning’s sharp selloff, may stay his hand; which would be a sign that he’s waking up to the dire consequences of protracted trade wars.
An announcement that there’ll be no additional tariffs on European goods would likely produce a bit of relief in equity markets, however, it’s going to take a no-tariff deal with China to bring markets measurably (and sustainably) back…
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