29 August 2018 : It’s remarkable how the initial euphoria from the US-Mexico trade deal has been slightly overshadowed by growing concerns over US-China trade relations deteriorating further.

The breakthrough in NAFTA negotiations between the United States and Mexico, coupled with optimism over Canada joining the agreement was certainly a positive step forward to easing trade war fears. However, two steps could be taken back if the Trump administration raises tariffs on $200 billion of Chinese goods on September 5th. This caution has slightly impacted risk sentiment this morning with Asian stocks edging marginally higher. Although European equity markets rose slightly higher at open, gains could be limited as investors continue to closely monitor the latest developments revolving around global trade.

Source : Lukman Otunuga, Research Analyst at FXTM

Reporting for EasyKobo on Wednesday ,29 August 2018 in Lagos, Nigeria