The looming Sino-US trade war has already sent shudders through global financial markets and if it escalates much further, the fallout could be immense. But amid all the gloom, some pockets of Australian industry could benefit nicely from Chinese tariffs on US goods.
Saxo Bank's Quarterly Outlook for Q2 is here, with expert insights and trading themes from our team of strategists. Get your copy here.
Q2 Outlook: Can the centre hold?
In a world moving quickly towards nationalism and anti-globalisation, the biggest loser will be the region that benefited the most from the big peace dividend of the Berlin Wall coming down: Europe, and Germany in particular.
Q2 Outlook: The great divergence
European equities are global laggards, with weak earnings and low valuations keeping prices well below those of their US counterparts. As we prepare to exit the era of convergence and increasing globalisation, Europe looks set to fall further behind. The question is, what can policymakers do?
Q2 Outlook: A reality check for the euro area
The problems facing the Eurozone economy are neatly illustrated by fresh German data showing soft exports and contracting factory orders. While Chinese fiscal stimulus should help get Europe’s biggest economy back on track, expansionary fiscal policy across the bloc, as well as interest rate normalisation, are also necessary to ameliorate the ills of the euro area as a whole.
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