A chance still exists that the US and China trade deal could be reached by the end of 2019. However, this will not prove to be enough to convince investors of the success in the market which is so expected, as researched by an investment expert from BlackRock.
The deputy head of BlackRock’s Official Institutions Group, Isabelle Mateos y Lago has said on Friday that trade deals arrived at between US and China will be narrow. This means that it is not likely that all tensions between the nations will be eliminated by it.
The website of the money manager states that the Official Institutions Group which works under investment firm BlackRock is managing $411 billion worth of assets for entities which include sovereign wealth funds and central banks.
Mateos y Lago was quoted by CNBC’s Nancy Hungerford at the spring meeting of the Institute of International Finance in Japan, saying that a trade deal will happen, but whether it will prove to dissipate all the underlying tensions between US and China or not, specifically the strategic issues of the technology sector, does not convince her.
While the US-China conflict continues on, the main worry of the investors is also divided between it and the trade disputes slowly arising between US and Mexico. Donald Trump’s threats of imposition of tariffs on Mexico to address concerns relating to immigration may cause a trade dispute of the US-China level.
According to Lago, investor sentiments are still going to be weighed down, even if the trade disputes are resolved.
A number of worries have arisen at the same time, and the US-China tensions have been added on by the tariff threats to Mexico. It has caused the markets to roil and sentiments are bound to be hurt. The threat signals tariffs to be levied on non-trade related issues.
While a resolution is expected to be arrived at for US and China, one should expect a resolution for the US-Mexico conflict as well.
