Friday, 15 November 2019

Markets mixed as US-China trade deal looks “on shaky grounds”

Markets were mostly lower on Thursday, with MSCI’S All-Country World index fallingt 0.11 percent.

However, the S&P 500 managed to gain 0.1 percent to record another new high.

According to Kristina Hooper, chief global market strategist at Invesco, investors are becoming concerned that the “phase one” trade agreement between the US and China, which had appeared to be imminent, is now instead looking to be “on shaky grounds”.

A report on Thursday showed that Chinese industrial production growth slowed sharply in October, with the 4.7 percent year-on-year rise well below forecasts for 5.4 percent.

Another report showed that the German economy grew just 0.1 percent in the third quarter.

Meanwhile though, technical strategists see potential for much higher US stock prices.

“We believe a continued unwind of crowded defensive positioning that reached its zenith in August can carry the rally through the fourth quarter,” said JP Morgan technical strategist Jason Hunter.

No comments:

Post a comment