Investors thinking of chasing a rally on a trade accord through European trade proxies, such as Germany’s export-heavy DAX index or the continent’s luxury names, should probably think twice, analysts believe. Vincent Deluard, global macro strategist at INTL FCStone, said that in the case China and the United States fail to clinch a deal, Europe could be flooded with cheap Chinese goods. In 2017, China exported goods worth 374 billion euros to the EU and 505 billion dollars to the United States. On Nov. 13th, Trump complained that while France could easily export wines to the United States, U.S. winemakers’ access to the French market was restricted. An escalation would meanwhile sharpen the global growth downturn and hit bourses worldwide, according to a big Reuters poll of economists.

Source: The North Africa Journal January 31, 2019 15:00 UTC