JPMorgan upgrades emerging market equities as Sino-US trade war eases
Last week, the U.S. and China agreed to a 90-day tariff reduction, with the U.S. cutting duties on Chinese goods to 30% from 145% and China lowering tariffs on U.S. imports to 10% from 125%, fuelling hopes of easing global trade tensions. "De-escalation on US-China trade front reduces one significant headwind for EM equities," JPM analysts said in a note, adding that the stocks would be further helped by a weakening of the greenback in the second half of this year. J.P.Morgan remains positive on India, Brazil, the Philippines, Chile, the UAE, Greece, and Poland within emerging markets, and sees a promising opportunity in China, particularly in technology stocks.
EU executive cuts euro zone growth forecasts because of U.S. trade war
BRUSSELS (Reuters) -The euro zone economy will grow more slowly this year and next because of the trade war started by the United States and uncertainty over when and how it will end, the European Commission said on Monday. In a forecast for the 27 countries of the European Union and the 20 countries sharing the euro currency, the EU executive arm said euro zone gross domestic product will grow only 0.9% this year, rather than the 1.3% expected last November. In 2026, euro zone growth should accelerate to 1.4%, but that would be still lower than the 1.6% the Commission had expected six months ago.
