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The trade war between the United States and China is officially underway.
On Friday, the United States introduced tariffs on imports from China worth $ 34 billion. China responds with the same coin with a corresponding tariff on US imports.
Stock investors shake off their debts over the conflict. The Chinese stock market gains 1.65%
From the overweight to neutrality
A month ago, the strategy of Leif-Rune Rein in Nordea Wealth Management has placed a larger part of the money Stock Customers
– If companies continue to make money and increase their earnings, why should they fall back? The reason the stock market falls off is that political turmoil will directly destroy businesses or create a recession. There is no connection between noise and the stock market, Rein says.
Now the trade war is a fact and Rein turns.
– We are neutral this month after being overweighted in equities at 10 months. This is due to slightly weaker data on the macro-numbers of Asia and Europe, but there is no doubt that the trade war is one of the main reasons why we have become neutral, says Rein to DN
The position of the shares depends on the investment strategy chosen. Nordea Wealth Management has six different strategies. The benchmark strategy usually has 50 percent of the money invested in stocks.
Last month, Kidney increased to 55 percent. Now it is reduced to 50%. It has the mandate to increase or decrease up to 15%.
Believes that the trade war lasts
Rein does not believe that the trade war will break out with the first.
– If the United States had exploded all the trade war What they accomplished, it rhetorically asks
– I doubt it disappears with the first. The US economy can handle a lot of customs a day, even though it gives higher inflation, says Rein.
He does not think that China will withdraw either. He believes that Asian markets in recent weeks have fallen only because of fear. In addition, the Chinese currency, Yuan, has fluctuated a lot lately and has dropped significantly against the dollar since February
"The People's Bank of China has already promised not to use the currency in the trade war but remains to see, "writes Rein in a morning report on Monday.
Applies to US Good Results
This week, companies are starting to report results for the second quarter. business profits are expected to grow by more than 20% The estimated revenue growth is 8.1%
"In other words, we are entering a new season robust reporting in the United States. It is the energy, raw materials, IT and finance sectors that should yield the best results, "writes Rein
but unlike last month, when Rein felt the market was would not be affected by the trade war. He is now a little more skeptical
– We risk to neglect good results because of the trade war, he says
in the United States, the big banks JPMorgan Chase, Citigroup and Wells Fargo present results this week. In Norway, DNB, Storebrand, Aker BP and Norwegian include numbers. (Terms)
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