Evans Chamberlain Asset Management – Trump's decision to delay the imposition of tariffs on cars imported from the European Union eases investors' fears of transatlantic trade war.
Press Release – updated: Aug 9, 2018 09:00 EDT
TAIPEI CITY, Taiwan, August 9, 2018 – Evans Chamberlain Asset Management analysts say that, according to a recent survey, investor confidence in the Eurozone increased for the second consecutive month this month as fears of a full-blown trade war between the United States and the European Union began to ease.
Evans Chamberlain Asset Management analysts reported that Sentix’s index for the euro zone increased from 12.1 last month to 14.7 this month. Evans Chamberlain Asset Management analysts had predicted an increase to 13.5 in August.
A sub-index gauging future prospects improved slightly but was still in the negative range prompting Evans Chamberlain Asset Management analysts to suggest that investors believe the Eurozone economy is in a phase of winding down.
However, Evans Chamberlain Asset Management analysts stated that investors clearly felt less threatened by the risk of a trade war with the United States.
In July, US President Donald Trump decided to hold back on the imposition of trade tariffs on vehicles imported from the European Union while the sides continue with discussions on how best to remove other trade barriers.
Trump’s decision, which came after discussions between European Commission President Jean Claude Juncker and President Trump, cooled growing concerns of a full-blown transatlantic trade war.
The investor confidence index in Germany reached its highest level since May this month. Evans Chamberlain Asset Management analysts commented that Germany’s motor industry would stand to lose the most with US tariffs on automotive vehicles.
In June, Trump ended a tariff exemption that had been effective since March this year and imposed import tariffs of 25 percent on steel and 10 percent on aluminum for metals exported from Mexico, Canada, and the EU.
Source: Evans Chamberlain Asset Management