The turmoil in the financial markets and the economic slowdown will likely force the US and China towards a trade deal, according to Australia and New Zealand (ANZ) Banking Group.
Trump kicked off a trade war with China in the second quarter of 2018. Since then, both parties have imposed tit-for-tat import tariffs on each other, leading to market instability and heightened fears of a global growth slowdown.
Key points (source: ANZ)
The signs out of the recent trade talks in China are promising and have boosted market optimism, despite the lack of concrete outcomes.
The downside is that commodity markets could feel renewed pressure if a happy middle ground isn’t found.
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