Analyst: The stock market rally brought by the US and Europe may just be a stimulant. Attention is now shifting to Mexico.
The United States and Europe reached a trade agreement on Sunday, with Kallum Pickering, Chief Economist at Peel Hunt, stating: "People are hoping to bet on the United States reaching a series of agreements. These agreements may not necessarily be good ones, but uncertainty is worse. After a slight increase in the European market tomorrow, attention will turn to Canada and Mexico. Any signs that they can reach agreements like today will be enough to stimulate 'risk appetite' emotions." Joachim Klement, strategist at Panmure Liberum, said: "The stock market may rise on this news, but at best it is only a temporary boost. In fact, Americans will pay higher tariffs for imports and face a surge in inflation and a slowdown in economic growth in the second half of the year. At the same time, the tariffs facing the EU are higher than those in the UK, giving British exporters an advantage over their European competitors."
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