Print Edition - 2019-01-24 | MONEY
Markets mixed amid uncertainty
Jan 24, 2019-
Global markets diverged Wednesday as investors grew nervous about the chances of success in China-US trade talks ahead of a crucial meeting next week.The mood remains cautious, with the rally that has characterised the start of the year stuttering owing to a slowing Chinese economy, a softer global outlook and other issues including Brexit and the US government shutdown, which shows no sign of ending soon.
US investors turned sellers on Tuesday after the Financial Times and CNBC said Washington had rejected Beijing’s offer of preparatory discussions ahead of the next round of high-level negotiations. “We are continuing to see caution in the markets on Wednesday, with reports a day earlier regarding trade talks between the US and China only aiding that,” said Oanda analyst Craig Erlam. Hopes that China and the US were on the right track have helped rally global markets in January. But data showing China’s economy grew at its weakest pace in three decades added to fears it is heading
for a hard landing, while Xi Jinping also showed signs of worrying about the effects of a slowdown in a speech to top provincial leaders this week. “Investors obviously are still a little bit edgy and therefore we would expect periods of volatility to continue,” said Mark Hackett, chief of investment research at Nationwide Funds Group.
Published: 24-01-2019 08:41