Markets should be wary of threat from rising US protectionism

LED mainly by Wall Street, stock markets around the world have so far held up well in 2017. Apparently optimistic that new US president Donald Trump's economic policies will keep the US economy on a growth path, investors seem willing to ignore the threat that his protectionist "America First" stance towards business and trade poses to the global economy. Although Wall Street is up only 1.6 per cent this year, it is nonetheless at an all-time high.

The VIX Index, often described as a "fear index" is at around 10, the lowest in several years, suggesting that even the optio…