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Morning Market Scoop 5 March 2019


Morning Market Scoop 5 March 2019

In our morning market scoop:

  • The renowned Trade War might be ending by March as Reuters reported the negotiations between the U.S and China are close to a deal.

“This is the End…”

What’s the scoop? U.S-China Trade Negotiations

The renowned Trade War might be ending by March as Reuters reported the negotiations between the U.S and China are close to a deal.

  • The deal might see the United States roll back of $200 Billion in tariffs on Chinese goods and China investigates structural economic changes as well as eliminate retaliatory tariffs on U.S. goods.

The big picture – The eight-month Trade War might be concluded in a summit around the 27th of March as reported by the Wall Street Journal. No fixed date has been set but China has asked for a 10-day window from mid-March for a possible summit. A trade deal would be welcomed as some stability would return to volatile financial markets, disruption in manufacturing and exports. There are a lot of details that still need to be worked out around the implementation, monitoring and enforcing of pledges. Optimism is at the order of the day that the two superpowers will reach an agreement that is mutually beneficial.

  • The eight-month Trade War saw the U.S impose tariffs on $250 Billion worth of imports from China. In turn the Chinese imposed around $110 Billion worth of U.S goods which included some commodities like soybeans. – Reuters

Notable companies reporting earnings are:

United States: Target Corp. (TGT) and Turning Point Brands Inc (TPB)

South Africa:  Attacq Ltd (ATT), Clover Industries Ltd (CLR) and Texton Property Fund Ltd. (TEX)

What does all this mean for me?

  • Stability in the Financial Markets is needed and, in a world, where political and economic tensions are at the order of the day, certainty is needed moving forward. if we see an agreement reached between the U.S and China it might spark some market stability across the world.