US-China trade: No news is good news - ING

In the view of Robert Carnell, Chief Economist Head of Research, Asia-Pacific at ING Bank, a lack of progress on the US-China trade front is serving as good news for the US equity markets.

Key Quotes:

“With the clock ticking until the Schedule 4B list of additional tariffs due on December 15 is implemented, there doesn't seem to be much progress on an elusive trade deal. The S&P 500 is grinding ever higher though. Bond markets are treading water. USDCNY is flattish to a little higher.

it is interesting how currently, despite rumors that the trade talks are having problems getting over the line for a phase-one deal, stocks are still rising, and indicators of risk sentiment remain broadly positive.

The clock is ticking though. There are about 25/26 days until the tariffs on this list are imposed - smack-bang in the middle of the gift-giving season in the US. I wonder if markets will get a little more jittery once we hit December? It also makes me wonder about the commercial possibility of a new tariff-related Advent calendar...”