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Macroscope | A US-China-Europe trade deal is what financial markets need
- Given the recovery in world trade growth this year, if the US, China and Europe can strike a deal to stop the slide towards global protectionism and boost opportunities for freer trade, markets could rocket
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Why you can trust SCMP
There are many potential problems still weighing on global recovery, clouding the outlook for world financial markets in the coming months.
The relentless spread of Covid-19 variants, slower global growth, the resurgence of inflation and uncertainty surrounding future policy responses from governments and central banks are compounding the problems facing investors hoping to get out of harm’s way.
On the bright side, though, there has been a rapid recovery in world trade growth this year, a big morale booster for investors if it can be maintained. If the US, China and Europe can strike a deal to stop the slide towards global protectionism and boost opportunities for freer trade in the future, then markets could rocket.
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It could set the seal on much faster world trade growth and clinch much stronger global growth in the process. It’s definitely worth a shot, so what’s stopping the world from trying?
07:07
The global spread of the highly contagious Delta variant of Covid-19
The global spread of the highly contagious Delta variant of Covid-19
Despite the continuing fallout from the US-China trade war and the damage wrought by the Covid-19 pandemic on global business activity in 2020, world trade flows are bouncing back.
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