According to Greg Gibbs, Analyst at Amplifying Global FX Capital, risk of broadening protectionist rhetoric from the US towards China and other major countries might have had a more negative impact on global investor confidence.
“At this stage, the market is tending to shrug off such risk.”
“The news of a thawing in the relationship between the USA and North Korea from 6-March, helped boost investor risk appetite.”
“The Goldilocks scenario for equities of strong low inflation global growth was given a boost by the low wage, strong growth in US jobs and labor participation on Friday.”
“In general, the market may be viewing sustained global growth and moderate inflation pressure as providing support for EM assets. The risk of a trade war led by US protectionism is not significant enough to derail global investor confidence.”
“Global equity markets, particularly EM markets have strengthened since the tariff news, and this appears to have supported the AUD and many currencies against the USD.”
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