What next for US-China trade war? 4 likely developments

In summary, investors need to be alert to the fact that trade policy will be a bigger factor in 2020 elections than in any US elections in recent memory, meaning there will be plenty of noise around the issue along with the possibility of unexpected changes. PHOTO: AFP

A sense of optimism has returned to global financial markets, as they take comfort from the expectation of continued accommodation by central banks and the resumption of trade talks between China and the United States.

While President Donald Trump's capacity to surprise and his tendency to interject directly make the eventual outcome of the trade negotiations difficult to predict, there are four developments investors should be prepared to encounter.

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