Bassanese Bites: Olive Branches – September 16 2019
Global equities continued to recover last week, buoyed by ongoing signs of a thawing in the frosty trade relations between the United States and China. Each side offered the other olive branches, with China agreeing to exempt certain US imports from tariffs and the US announcing a two week delay before planned tariff increases on October 1 go into effect.
As I’ve suggested in a separate note, me thinks Trump is warming to a compromise “interim” deal given growing risks to US economy if tensions drag into the 2020 election year. We’ll see!
Also bolstering sentiment last week was another solid US retail sales report, suggesting the US consumer remained strong in the September quarter.
