The G20 summit ended with another truce in the spiralling trade war: President Trump withdrew his threat to impose tariffs on the remaining USD 300bn in Chinese imports and agreed to resume trade talks. However, he did not backpedal on the tariff hikes introduced in early May, or on setting a deadline for reaching a deal.
The Swiss stock market entered uncharted territory this week after the European Union withdrew its ‘equivalence’ status. This decision should not affect investors too much in the short term, even though Swiss securities can now only be traded on the domestic market. In the longer term, however, it is difficult to tell what the consequences of this power struggle between Switzerland and the EU will be.
After breaking through key resistance levels, gold prices dropped back to USD 1,400 per ounce. Gold’s recent momentum seems to be driven more by the US dollar’s decline than by the trend in other risk-free assets.
Normalisation can wait
USA: the G20 brings some respite for investors
To go deeper
Coronavirus continues to spread. It has now far outstripped the 2003 SARS outbreak in terms of the number of people infected and the number of deaths. So far, it has mainly affected China, with less than 1% of reported cases occurring outside the country. Beijing has brought in drastic containment measures to try and limit the spread of the infection in Hubei province, and especially in the provincial capital Wuhan...
Commodities – and especially the most cyclical ones – have been hit hard by the coronavirus outbreak in China. Many indexes are now at a two-year low, which means there will be attractive buy opportunities once we have a clearer idea of economic growth going forward...
The pound reacted well to the Bank of England's decision to keep inter-est rates the same. This is almost certainly because leading indicators have improved since the general election, which lifted some of the prevailing uncertainty. But the UK is now officially in the transition peri-od, and talks with the EU will be tough...