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As reported by Bloomberg, the CEO of Credit Suisse  Group AG, Tidjane Thiam, warns that markets remain overly cautious on trade tensions despite strong fundamental performance and high corporate profits.

Key highlights

At the International Economic Forum of the Americas in Paris, Thiam noted that broader markets have a palpable level of fear and nervousness, as continued revelations, episodic political crises, and unpredictable news cycle lend trading markets an air of fragile equilibrium.

A rising Greenback, coupled with rising interest rates within the US has seen emerging markets put under intense pressure, and continuous turmoil between the US and her major trading partners have thrown broader markets into disarray. Thiam also noted that the current impact of trade wars is largely on market sentiment, rather than actual economic factors.

“The accumulation and creation of wealth is clearly happening much faster in emerging economies, and it’s not surprising,” he said Tuesday. “In fact it’s a very good thing because the majority of humans live in emerging markets.” – Bloomberg