Market sentiment has been calm for a while, digested well by investors, simply because they’ve gotten used to the fieriest topics and of course a signed deal between Korea and the US, although trade tensions were further ignited by Trump’s subtweets after the G7 summit, No action was due.
The G7 summit proved the geopolitical changes we face today with the US and China claiming independence whilst Europe searches for Unity. This was previously mentioned by ADSS strategic team, a new political roadmap in the cards and perhaps a new European alliance with Russia.
Indeed China has been holding strong economic grounds for the longest time but could the reason its handling things smoothly so far with the US be because its debt is mounting a lot higher than it seems. Especially with an offer placed to buy 70 billion US products if Trump abandons threatened tariffs. If China-US relations don’t resolve, Trump could go back to his weaker dollar policy to limit the trade deficit.
In Addition, Recent scenarios indicate further Brexit uncertainties, placing positive momentum for the pound, as rich and powerful men spend more money lobbying Brexit to stop it from happening and PM May pressured in parliament over future customs relations with the EU. The parliament has voted that the government alone can’t decide on the Brexit deal which indicates the parliament lacking support for the deal to progress. Questions arise as Macron and Merkel take a powerful stance to unify Europe whilst Brexit would cause a definite fallout.