Global growth concerns weigh as US-China meetings approach bolstered by latest rumours pointing to a last minute cancellation. However, President Donald Trump’s top economic adviser, Larry Kudlow, said that meetings are still in place and likely to occur later this month.
What’s more important, nonetheless, is the content and possible agreements that both countries would trigger out of that meeting. In the meantime, and until China’s president Xi Jinping and its US counterpart Donald Trump sit together, speculation and concerns in stock markets are rising up. “Concerns over global growth weighed on stock markets as investors turn their attention to potential developments in the ongoing US-China trade conflict. Following the week long holiday for the Lunar New Year, shares in China re-opened to trade higher as investors anticipate the next round of meetings between US and Chinese officials to discuss trade in Beijing,” commented about it Mihir Kapadia, CEO and Founder of Sun Global Investments
That high-level meeting has turned critical for both countries and the ongoing trade war as on the 1st March expires the truce that both countries agreed upon last year. “With weeks to go until the 1st March truce deadline for an agreement before the trade conflict between the two nations intensifies again, investors are hoping for progress towards a deal, but are cautious following the disappointing lack of progress so far,” continued Mr Kapadia.
Additionally, Global growth concerns weighed on European stocks following last week’s downgrade of Eurozone growth by the European Commission, but the prospect of the progress in US-China trade talks has helped stock indices to advance.
In the UK, GDP data revealed a considerable slowdown in growth, falling from 0.6% in Q3 to 0.2% in Q4, with annual growth falling to a six year low. Mr Kapadia added that, “Although the figures reflect the significant impact that Brexit uncertainty has had on the UK’s economic growth, it also follows a pattern of slowing growth seen in both France and Italy’s GDP figures, with the latter falling into recession, signalling the slowing global growth that investors have been concerned about.”
“With Germany’s economic data expected later in the week, and the outcome of US-China talks likely weigh on markets, investors will be watching for clues as to how much further global growth is likely to slow moving forward, and will follow developments closely,” the expert concluded.
Hernaldo Turrillo is a freelance journalist working now for IntelligentHQ. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. He was born journalist and became a thinker. Knowledge has no limits.