Escalating trade dispute leads to increased prices - Dax hits new peak record - Escalating trade disagreements cause prices to soar - DAX on track to hit new peak heights
Get ready for some positive vibrations in the financial world! The announcement of Donald Trump sealing a trade deal with the UK has infused some much-needed optimism into the global market scene, according to Kelvin Wong, an analyst at trading platform Oanda.
The US President and UK Prime Minister Keir Starmer trumpeted a "historical" trade agreement on Thursday, sending a wave of excitement rippling through markets. Trump even hinted at potential deals with the EU and China too.
In Asia, this news drove stocks up in Tokyo and Seoul. However, the reaction in China was subdued: the Hang Seng Index in Hong Kong barely moved, and indices in Shanghai and Shenzhen saw a slight drop.
But Ipek Ozkardeskaya, an analyst from Switzerland's Swissquote bank, warns not to get too carried away. She suggests this "frenzied announcement" might be giving the deal more clout than it deserves. At best, US-China talks happening this weekend in Geneva will go swimmingly, and stocks could skyrocket again on Monday. But if the talking goes sour, prepare for another rollercoaster week with a massive stock sell-off and currency turmoil.
Here's what you need to know about this whirlwind of developments:
Skirting around the obstacles
The optimism surrounding the US-UK agreement is balanced by tariffs remaining on most goods from the UK and keeping some tariffs on steel, aluminum, and vehicles. This partial deal offers a glimmer of hope, but it's not a golden ticket, suggesting additional negotiations are still underway.
The Geneva showdown
The US-UK trade agreement sets a promising atmosphere for upcoming US-China talks in Geneva. Market eyes will be wide open, looking for signs of progress and whether the tone of the agreement will impact the US approach to China. The deal could indicate the US administration's willingness to negotiate tariff reductions with China, leading to further stock rises if the talks break promising ground.
On the flip side, uncertainties still lurk, including prolonged tariff regimes and pangs of incomplete agreements. The US-UK deal is not an all-encompassing solution, and many key issues remain unresolved. This leaves investors on edge, anxiously awaiting the Geneva talks to unfold.
So, while the US-UK deal has given stocks a much-needed boost, it also underscores the risks of lingering tariff unpredictability that loom over the horizon, affecting global stock markets. Step into this ride as we wait for the Geneva talks to shed light on the future of US-China negotiations!
- The US-UK trade deal has ignited hope in the financial world, with analyst Kelvin Wong at trading platform Oanda attributing the optimism to the agreement.
- The optimism is somewhat tempered by the fact that tariffs will remain on most goods from the UK, and some tariffs will continue on steel, aluminum, and vehicles in the partial deal.
- The US-UK trade agreement could set a positive tone for upcoming US-China talks in Geneva, with market eyes looking for signs of progress and potential tariff reductions.
- However, uncertainties still persist, including prolonged tariff regimes and incomplete agreements, leaving investors on edge and anxiously awaiting the Geneva talks.
- The US-UK deal has given stocks a boost, but it also highlights the risks of tariff unpredictability and its impact on global stock markets, making the Geneva talks crucial for the future of US-China negotiations.