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New Quarterly House View: Equities will survive the ongoing trade war

One single tweet from Donald Trump has affected the stock markets enormously since May 2019. The president’s tweet ended a period of harmony on the financial markets to uncertainty. In our new Quarterly House View Report Danske Bank is a near future optimist.

The escalation in the trade war between the US and China has effectively slammed the brakes on this year’s upturn in global equity markets. We are in the eye of the storm. But storms do pass, and when the wind eventually drops we expect that equities will continue to offer the most attractive return potential.

Lars Skovgaard Andersen 

Senior Strategist, Danske Bank 

Overview of procurement

  • Strong consumers  
  • Growth is well-balanced  
  • Rate hikes on hold  
  • Low, long yields  
  • Economic stimulation in China  
  • Potential for surprises   
  • Trade war could get out of hand 
  • Other political risks  
  • Renewed fear of a recession