Trade Tensions Events and Average Correlation of Assets Tracking China Related Risks This chart shows the risk of renewed US-China trade tensions and market pricing. Image: Goldman Sachs Global Investment Research
Global GDP Growth Outlook – Trade Tensions vs. Policy Easing The escalation of trade tensions is a risk to the global economy outlook. Image: Morgan Stanley Research
Why Trade Tensions Are Not Driving the U.S. Stock Market? Because many Unicorns are going public in the United States this year. Secondly, U.S. banks are healthier than ever and liquidity conditions are quite good in the U.S.. So all in all, that’s far more important than trade tensions. Image: Bloomberg
BlackRock Geopolitical Risk Indicator for Global Trade Tensions The recent decline of the indicator suggests that investors may be more complacent about the risk and impact of trade conflicts. Source: BlackRock Investment Institute – Global Investment Outlook Q2 2019
U.S. Trade Balance with China by Month U.S. deficit with China narrowed slightly in a year of trade tensions. Image: Oxford Economics
Global Trade Volume Chart showing weaker global trade volumes amid trade tensions. Image: Financial Times
S&P 500 Annual Gains The S&P 500 hits new record after U.S. and China strike deal to ease growing trade tensions. Image: Financial Times
Central Bank Reserve Holdings of Gold For the first time since the end of WWII, central banks are increasing their holdings of gold to diversify their reserves away from the U.S. dollar, amid trade tensions. Image: Bernstein
Liquidity Premium and IG Bonds The spread between low liquid and high liquid IG bonds is widening, despite the rally and the belief of an improvement in US-China trade tensions. Image: Goldman Sachs Global Investment Research
China’s Global Acquisitions Global acquisitions by Chinese companies continue to fall, due to tight credit conditions and US-China trade tensions. Image: Financial Times
Buybacks Are the Source of the Rally in the Stock Market since 2009 But as trade tensions and economic slowdown worry U.S. firms, stock buybacks declined last quarter. Image: Deutsche Bank Global Research