A raft of economic data today means the market’s focus is on beats and misses
The return of onshore China investors after a ramping up in US-China tensions failed to light off any fireworks again today on and Chinese equity markets.
But will the better than expected China April trade data provide a spark to reignite those trade war flames? I would not be surprised if President Trump is nursing a Diet Coke right now while glossing over the country breakdown within China’s import data. Indeed, he might be looking to storm the election stage right out of the gates tomorrow with tariff threats in tow. But I think this view is mostly falling on deaf ears at this time.
The market remains entirely complacent to trade war risk writing it down to political grandstanding. Still, the problem with that playbook is the sinister retribution usually occurs in the final chapter when the tariffs have reveled, and it is too late to react.
But within that context, risk markets continue to trade…