Markets: Nexus of geopolitical shocks continues – Danske Bank

The nexus of geopolitical shocks continues as the US President Donald Trump ramped up pressure on Canada to join the revamped NAFTA deal agreed to by the US and Mexico, notes the research team at Danske Bank.

Key Quotes

“Meanwhile, the public hearing on tariffs on USD200bn worth of Chinese imports is set to end today.”

“We expect Trump to announce the imposition of said tariffs and China to retaliate. We do not expect any deal between the US and China before the US Midterm Elections on 6 November.”

“With regards to the midterms, we expect the Democrats to take the House, but the Republicans to retain the Senate.”