Reuters Insider - Markets fret ahead of trade deal signing

Baader Bank AG

15/01/2020 12:03

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Source: Reuters Insider

Description: World stocks eased off record highs on Wednesday and U.S. and
German bond yields slipped as euphoria over a Sino-U.S. trade deal was
depleted by U.S. Treasury Secretary Steven Mnuchin saying tariffs on Chinese
goods would remain in place for now. David Pollard reports.
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Video Transcript:

Waiting and watching. Global markets were on pause on Wednesday ahead of
2020's biggest diary date so far: the signing of a so-called Phase 1
U.S./China trade deal. 18 months of tariff conflict has hit hundreds of
billions of dollars in goods, uprooted supply chains and slowed economic
growth. The deal means China will pledge to buy more US products -
agricultural, manufactured and energy - but does not tackle issues like
subsidies. Markets in the meantime were slipping off recent record highs. Wall
Street closed weaker on Tuesday. Most Asian bourses ended around 0.5% or so
down while Europe's STOXX 600 slipped into the red in early trade. Baader
Bank's Robert Halver.

The mood is good but everyone should be aware that there will be a little
downturn at some point. We have seen a lot of positive news and there is a
point when the stock exchange says, "We'll let some air out."

Steve Mnuchin helping keep a lid on gains. The US Treasury Secretary appeared
to suggest that US tariffs on Chinese goods would remain in place for now. Oil
prices slipped after the comments, bond prices and gold nudged higher as
traders worry that global demand may not pick up quite so fast after all. The
trade war in truce perhaps, but peace not declared yet