“While these talks are productive, a head fake or a dead cat bounce may be possible, should Trump's relationship with President Xi Jinping begin to sour again,” state Morningstar analysts Kai Wang and Kathy Chan in their May 12 report.
Trade talks between the US and China in Geneva over the past weekend proved fruitful as both countries agreed to lower tariffs on each other’s imports by 115% which many hail as a sign that the worst could be over.
While tensions have significantly eased, Morningstar believes that the road to recovery remains rocky, given that President Donald Trump could still have a surprise up his sleeve given his history of changing course and making maximalist proposals.
