After an extended interval of uncertainty, it’s now official: negotiations on a deal between the US and China are going to start, Commerzbank’s Head of FX and Commodity Analysis Thu Lan Nguyen notes.
US-China talks formally resume
“This raises hopes of a rapprochement and finally a discount within the reciprocal punitive tariffs. After the US authorities had backtracked considerably and the tariffs will undoubtedly hit China’s economic system exhausting, this will likely not come as an excessive amount of of a shock. The greenback ought to subsequently solely profit to a restricted extent. Particularly as residual uncertainty stays.”
“It stays to be seen what the management from Washington and Beijing will finally agree on. The established order will not be sustainable, however the financial and ideological rivalry is a actuality and is prone to forestall a return to (largely) free commerce between the nations. It may possibly subsequently be assumed that the financial ache from the commerce dispute will ease, however not disappear.”
