Backdrop argues against US-China progress on trade – Morgan Stanley

News

Do both sides needs some pain first?

The conditions might not be right for the US and China to make a trade deal, Morgan Stanley argues in a note today.

They highlight that when Trump called Xi to resume trade talks in December, it came after a 20% drop in US equities. They also note that Chinese economic data has picked with retail sales notably strong.

“US and Chinese data strength may make both sides believe that there is no need yet to soften their negotiation position,” they write.

Yesterday Trump said that he could impose more tariffs on China if he wants. The market took that as a negative signal and equities are further slumping today, with the S&P 500 down 12 points.

ForexLive

Products You May Like

Articles You May Like

Here’s What To Expect From The November Jobs Report, According To Market Experts
AUD/USD in search of a firm direction, stuck in a range around mid-0.6800s
Asia Morning Session: Global Markets Return To Their Happy Place
EUR/JPY price analysis: Euro drops against yen, trades near 120.00 handle
Forex Trading: the key to consistency is multi-timeframe analysis

Leave a Reply

Your email address will not be published. Required fields are marked *