Not time to go risk-on, say strategists
Strategists remain broadly optimistic that a US-China trade deal is likely to materialise, despite Donald Trump's latest threat to hike tariffs on Chinese imports later this week. Here is a round-up of their views.
Add BT as a preferred source
Genevieve Cua
DeeperDive is a beta AI feature. Refer to full articles for the facts.
US PRESIDENT Donald Trump's threat to hike tariffs on Chinese imports later this week took markets by surprise, causing an immediate pullback.
The Shanghai Composite Index fell more than 5 per cent on Monday; the Hang Seng Index fell 2.9 per cent and the MSCI Asia ex Japan also tumbled by more than 1.7 per cent.
Strategists, however, remain broadly optimistic, putting forward their base case that a deal is likely to materialise. Most appear to have assigned a probability of about 60 to 70 per cent to this scenario. But most say it is too early to ramp up on risk. In the near term, investors should brace for yet more pullbacks.
Copyright SPH Media. All rights reserved.
TRENDING NOW
From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?
Higher costs, lower returns: Why are Singaporeans still betting on real estate?
South-east Asian markets account for 8.8% of global capital inflows from 2021 to 2024: report
Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant
