Bloomberg Daybreak: Asia Edition US-China Trade War Casts Shadow on Global Markets
6 snips
Feb 6, 2025 Stephanie Leung, Chief Investment Officer at StashAway, shares her expertise on how recent US tariffs on China are shaking up global markets. Zachary Hill, Head of Portfolio Management at Horizon Investments, sheds light on market behavior during this turbulent time. They discuss the economic repercussions of the US-China trade war, including shifts in Asia-Pacific markets and the influence of tariffs on investment strategies. Additionally, advanced AI developments and their potential effects on the housing market in China are explored.
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Focus on Bond Markets
Pay attention to the bond market reactions as a gauge of tariff impact. If tariffs are taken seriously, bond yields should reflect that with a significant movement.
Consumer Behavior in China
The wealth effect in China heavily depends on the housing market, contrasting with the U.S. where equity markets dominate. Stabilization in property prices is crucial for consumer spending recovery.
Impact of Tariffs
The market is surprisingly resilient despite the imposition of 10% tariffs on Chinese exports. Investors expect these tariffs to be rolled back relatively soon, influencing market behavior.