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market | IST

Trump-Xi trade ceasefire isn't the end of problems between US and China, says Lakefield Partners

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Global equities rallied on Monday after the US President Donald Trump and Chinese President Xi Jinping agreed to a 90-day on further tariffs in their trade war. To discuss the global news flow and its impact on equity markets world over, CNBC-TV18 spoke with Bruno Verstraete, a partner  of Lakefield Partners.

Global equities rallied on Monday after the US President Donald Trump and Chinese President Xi Jinping agreed to a 90-day on further tariffs in their trade war.
To discuss the global news flow and its impact on equity markets world over, CNBC-TV18 spoke with Bruno Verstraete, a partner at Lakefield. He said the 90-day ceasefire is not the end of the problems between US and China.
"There are many outstanding items that need to be solved within 90-days. The market knows that nothing much is going to change until then and that has an impact on the technology sector in the US, which would have a relief rally on that news," Verstraete said on Monday.
According to him, "The emerging markets in general could be the most interesting place from equity point of view for 2019 given high growth and low valuations."
"With regards to India, it has an advantage or disadvantage however you look at it. India is one of the markets with high technology weight and that sector for next few years is going to benefit from a lot of growth. It needs to be seen how these stocks remain relatively attractively priced in order to be attractive to foreign investors," said Verstraete.
"The disadvantage is if the US Fed quantitative tightening will reduce the attractiveness and the inflows into emerging markets."