Trading on uncertainty about tariffs

INVESTORS supposedly hate uncertainty, but the uncertainty of a 90-day delay to extra tariffs on China turned out to be better than the certainty of extra tariffs – for a day. Stocks soared on Monday as markets welcomed the cease-fire over the weekend in the US-China trade spat, only to collapse on Tuesday as hope faded.

The uncertainty is likely to keep hurting the world economy. Companies that were delaying investment decisions are hardly likely to put plans into action on the basis of a temporary truce.