Global Equities Resilient Despite Trade War Fears

Markets have generally remained robust in the second quarter, despite increasing interest rates, trade war tensions and Chinese equity weakness

Scott Dixon 6 July, 2018 | 8:40AM

Chinese Equity Markets are Down 20%

The investment landscape is offering both opportunities and challenges. The second quarter of 2018 was testament to this, with an undercurrent of risk-off sentiment yet broad market resilience.

A key focal point has been the trade-war rhetoric, with emerging markets being put under significant pressure as capital outflows persisted. This is true both at an asset level and at a currency level, although the fundamental thesis and economic progress is largely unchanged. Related to this development, a meaningful move was a stronger US dollar – especially relative to the euro and sterling – helping bolster returns for non-US investors.

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About Author

Scott Dixon  is an Investment Writer for Morningstar Investment Management Europe

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