JOHANNESBURG – After 18 months of painful trade disputes between the United States and China, there is finally a glimmer of hope with both sides moving closer to a deal that could resuscitate global growth.
A wave of positivity initially flooded financial markets on news that the US and China agreed to roll back tariffs as part of the Phase I deal.
However, this optimism was later tempered by reports that the White House’s plan to rollback China tariffs was facing fierce internal opposition.
Although most remain cautiously optimistic that a trade deal is still on the horizon, conflicting messages between both sides could strain investor confidence and dampen global sentiment.
This is already being reflected in Asian markets on Friday morning with mixed performance, as investors attempt to gain clarity on the current trade developments. The cautious mood from Asia has the potential to infiltrate into European markets later this morning.