As we speculated three weeks ago (please see here), Donald Trump this week said he would delay implementing US tariff increases planned for today (Friday 1 March 2019) as the US and China continue to progress their negotiations for a new trade deal.
Consequently, global equity markets rose (with Chinese equities leading the way) reflecting the fact that the uncertainty surrounding global economic growth is diminishing – the US and China are the world’s two largest economies. And as we have said before, with Presidential elections next year, the White House obviously has an incentive to reach a quick compromise.