May 10 20
Russell Investments published a rapid-response Market Week in Review blog post on the escalation in the U.S.-China trade war and the potential market and economic impacts.
Key highlights
- CEO confidence levels are susceptible to drop as business leaders mull changes to how business is done in the U.S. and globally, in light of the new tariffs.
- Business hiring and investment may slow due to the trade-war escalation, as it did during Q4 2018 when trade talks stalled.
- If a trade deal is not reached with the U.S., China is likely to respond by adding additional economic stimulus.
- Outside of China, additional economic stimulus is also likely to boost growth rates in Europe, Japan and emerging markets.
- Markets are not in a panic state.
On the latest edition of Market Week in Review, Chief Investment Strategist Erik Ristuben and Research Analyst Brian Yadao discussed the implications for markets after prospects for a U.S.-China trade deal soured.
