Daily Commentary BY THE CURVE TEAM –

Trade War Threats Ease

27th of March, 2018

In what was an otherwise quiet night, there looks to be a revelation in the ongoing trade debacle between the US and China. From what started as a prospect for an all out trade war, what could actually occur could be a whole lot milder.

Headlines over the past week have been riddled with titles around a trade war between the US and China. However, the past 24 hours have revealed that it is more of a dispute with both parties indicating that they do not desire to engage in an all out conflict, rather come to a mediation.

Reports from the Whitehouse from trade advisor Peter Navorro indicated that the US and China “are already at the negotiating table.

Markets, particularly in the equity space, retraced most of the losses that we saw at the end of last week on the news.

It has been a bit of a rollercoaster ride of late, however while we wait for parties to come to an agreement, the outlook for the global economy looks less gloomy than where we were a week ago.

Besides RBA assistant governor Chris Kent’s speech, the highlight today will be the weekly consumer confidence reading. While the tide looks to be turning on the trade front there is still a great deal of uncertainty, this is likely to be reflected in today’s data.

Oliver Parsons

Client Relationship Manager