With talk of U.S. trade with China dominating the news in 2019, it’s a good time to look at how trade could affect markets in 2020.
U.S.-China trade relations has a history that takes us back to the mid-90s and the opening of China to U.S. goods and services. It was the opinion of the western leaders that accepting China into the new world order was sound in judgment, says Jack Bouroudjian.
As the western world leveled out the playing field, tariffs became the needed weapon for the job. Prior to the trade war, U.S. goods and services trade with China totaled an estimated $737.1 billion in 2018. Exports were $179.3 billion; imports were $557.9 billion. The U.S. goods and services trade deficit with China was $378.6 billion in 2018. So, if there is a trade deal, what should we expect for equities, FX and commodity markets?
In this week’s OpenMarkets Weekly, Jack seeks to answer that question on one of the stories that has affected markets the most in 2019.