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. In 2017, China exported goods worth 374 billion euros to the EU and 505 billion dollars to the United States. Many investors fear the immediate relief of a China-U.S. deal could be swiftly followed by a bitter confrontation between the EU and its closest ally. 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. But while both emerging and European stock markets underperformed Wall Street during 2018 due to the trade stress endured by exporters, European shares remain very much less loved by global investors than their EM peers.

Source: The North Africa Journal January 30, 2019 09:33 UTC