Unexpected uptrend: Trucks move shipping containers at a port in Qingdao in China’s Shandong province. China’s export growth unexpectedly rebounded in May, while imports fell more than forecast amid the escalating trade war with the US, data showed. — AP
DUBAI: Two opposing forces are at play in emerging markets. The first is excitement over the dollar’s decline as speculation grows that the US will cut rates soon. And the second is dread over President Donald Trump’s trade war.
While Mexico averted the start of new tariffs, Washington’s campaign to shake up trade agreements worldwide is still wreaking havoc on global economies. But the impact of Trump’s unpredictable tweets will probably be less detrimental on emerging assets if the dollar’s slide last week, the worst against a basket of currencies since February 2018, proves to be a trend.
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