Trade tensions are a huge risk to markets again

Financial markets have enjoyed a massive rebound in recent weeks as investors peg the hopes of theirs to a coronavirus vaccine, central bank stimulus and government and an economic recovery in the second half of this season. But trade tensions – especially between the United States and China – have resurfaced as a big risk.

What is happening: The Dow and the S&P 500 logged the best performances of theirs in 6 days on Monday after a coronavirus vaccine developed by Moderna showed positive early results.

But investors are increasingly concerned about the tenuous trade truce between Beijing and Washington as the world’s 2 largest economies exchange criticism over handling of the pandemic.

“Equities may be turning already to refocus on trade tensions,” Societe Generale strategist Kit Juckes said in a note to clients Tuesday.

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Credit: CNN

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