Mixed domestic and global signals confuse investors
It was believed a week ago that the US and China would come to an agreement on tariffs that were to be introduced this past Tuesday. US President Donald Trump announced that “phase one” of a sound trade deal was on the cards. The US has delayed the proposed tariff increases.
Together with a small hope that a Brexit agreement would be reached on Thursday, equity markets across the world traded positively mid-week as the S&P500 once again had broken through the 3000 level on Thursday.
The Brexit “deal”, however, was stalled by the British Parliament.
The announcement by China that its economic growth rate had contracted further to 6percent during the third quarter against the previous quarter turned sentiment to the worse on Friday.
Source: iol.co.za
