US/China trade talks continued to dominate global equity market sentiment.
The week started positively after it was signalled that the US and China were edging towards an initial trade agreement (phase 1), following constructive discussions between China’s Vice-Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.
Unfortunately, global equity markets reversed these gains as the week progressed amid concerns that a US bill supporting Hong Kong’s autonomy could throw a spanner in the trade negotiations – and if the phase 1 deal isn’t signed by 15 December 2019, then there is a good chance the next round of US tariffs on Chinese goods will kick-in.