Investors hope talks will resolve trade dispute, while new figures on UK housing and world economy are due
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It was another wild week on stock markets last week as the rollercoaster ride that is the trade dispute between the US and China continued to unnerve investors.
President Xi and I will always be friends, no matter what happens with our dispute on trade. China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!
Steep declines on Wall Street have been shrugged off in Asian markets overnight and European shares look set for a positive open. US shares had initially held up relatively after President Donald Trump threatened another $100bn in tariffs against China. Few were willing to hold on over the weekend after US Treasury Secretary Steven Mnuchin acknowledged the possibility of a trade war. Trump tweeted over the weekend with respect to China that ‘Taxes will become reciprocal & a deal will be made on intellectual property.’ Trump’s softened stance offers some hope for calm in his trade dispute with China.
With US earnings season starting this week some decent reports could be the difference between a rebound off these [market] lows, and optimism about future profits or worries as to whether we’ve seen the high water mark for profits growth. Investors will have to look past recent tax changes, as well as market volatility and flatter yield curves to determine what effects these might have on long term profitability.