- Presidents Trump and Xi came to a tentative truce on trade at the G20 summit in Buenos Aires, Argentina.
- The positive nature of the talks has seen markets surge on Monday.
- But what are analysts saying about the agreement?
- Business Insider took a look at notes released by major research houses, investment banks, and asset managers since the deal was struck on Saturday evening.
Presidents Trump and Xi came to a tentative truce on trade at the G20 summit in Buenos Aires, Argentina, postponing the next round of tariffs and agreeing to a 90-day window for further discussions.
This means that the US will not raise the 10% tariff rate on $200 billion worth of Chinese goods to 25% on January 1, as originally scheduled, while in return China has committed to buying a "very substantial amount of agricultural, energy, (and) industrial" goods from the US.
Expectations going into the summit were low, with many commentators saying that the meeting could actually make trade relations between the two nations even worse. The positive nature of the talks has seen markets surge on Monday, most likely in relief than anything else.
But what are analysts saying about the agreement? Business Insider took a look at notes released by major research houses, investment banks, and asset managers since the deal was struck on Saturday evening. Check out 10 of the best below.
"A bumpy ride ahead": Li-Gang Liu, economist at Citi
"The result is better than the market expected, but the huge divide remaining continues to suggest a bumpy ride ahead," Liu said.
"Comparing the official statements, we find that the US stresses more on China’s structural reform issues on forced technology transfer, IP protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture, while China continues to highlight its willingness to increase imports from the US to reduce the trade imbalance as well as open its markets wider for foreign participation."
"Should provide investors some relief": John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management
"The effects of a truce period should provide investors some relief near term from the day-to-day concerns that have roiled the markets on the risk of a protracted trade war and the damage it could cause to global economic growth and corporate earnings over the course of the next year.
"The hope is that both sides will make good use of the truce period to find resolution to the trade dispute and remove the negative overhang that has held international equity market performance hostage since the summer."
"Rough patches ahead": Hisao Matsuura, equity strategist at Nomura
"At the same time, the deadline for the new trade talks has been set for 90 days. We
think talks between the two countries are likely to hit some rough patches as the
negotiations actually get under way."
Looking forward, Nomura says the start of 2019 could be rocky for the markets with Brexit and company earnings helping add to the uncertainty around the trade war.
"We think the time limit of 90 days for the trade negotiations will only serve to heighten the chances that stock prices will weaken," the bank said.