'The market is looking at this kind of like a horse race.' Here's what 3 experts are telling investors to watch ahead of the G-20 summit.
Evercore ISI strategist Donald Straszheim said there are three potential outcomes from the Trump-Xi meeting: First, the U.S. agrees to hold off on slapping additional tariffs on Chinese goods for an indefinite amount of time. Second, the U.S. holds off on additional levies for a fixed amount of time. Third, the U.S. makes no mention of the additional tariffs in its post-meeting statement, which would suggest the administration will move forward with them "ASAP.
Straszheim says this outcome has a 45% probability of taking place and ranks as the second-most favorable for Trump, Xi and the market. "This is a jointly recognized time-out. Higher tariffs by the US are not implemented for maybe a short time, maybe a long time," Straszheim said in a note. "Real negotiations would presumably be re-launched. This is maximum uncertainty on tariffs, and to the Markets and others , but provides maximum flexibility to Trump."The second-most likely scenario is the two sides agree to restart trade talks with the U.S.
There is a 35% chance of this outcome taking place and it would be the most favorable to Xi and the stock market as it would give them time to "breathe." It would also give the market "certainty for more negotiation time." But what makes this scenario unlikely is it would hamstring Trump in future negotiations.This scenario — along with the first one — would likely benefit trade-sensitive names like Caterpillar and chipmaker stocks.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street sinks as hopes fade for rate cuts, trade progressWall Street stock indexes fell on Tuesday, led by a sharp selloff in technology ...
Read more »
Tech boost, trade optimism lead Wall Street higherWall Street rose on Wednesday, as technology shares gained on the back of Micron...
Read more »
Here are the biggest analyst calls of the day: Chipotle, Starbucks, McDonald's & moreHere are the biggest calls on Wall Street on Tuesday
Read more »
Here are the biggest analyst calls of the day: Slack, AbbVie, Roku & moreHere are the biggest calls on Wall Street on Wednesday
Read more »
FedEx warns 2020 results to be hurt by trade war, shares fall 2%Package delivery company FedEx Corp beat Wall Street estimates for quarterly pro...
Read more »
FedEx profit beats estimates, warns of pain in 2020 from trade warPackage delivery company FedEx Corp beat Wall Street estimates for quarterly pro...
Read more »