Through a note published this Friday, the entity said that LIn expectation that there are more agreements to reduce tariffs continues to promote investors confidencedespite the fact that the market already discounted much of the loss in geopolitical tensions.
“The markets continue to feed with a drip of positive headlines on tariffs,” Barclays wrote in a weekly comment. The note indicated the Next round of commercial conversations between the US and China and the recent commercial agreement with the United Kingdom as evidence that “we have overcome the point of maximum uncertainty.”
Although the agreement with the United Kingdom includes a 10% tariff and few details, it helped strengthen the belief that tensions could be decreasing. “Greater unrelated and progress in the agreements within the 90 -day relief period are helping markets to gain time in the final recession game,” said Barclays.
Optimism comes with warnings
However, according to the bank, optimism comes with warnings. “Rhetoric alone will not boost actions forever“The firm warned.
Barclays stressed that shares markets have already bounced at “levels prior to the day of liberation”, which suggests that much of the good anticipated news are already discounted. In addition, he said that “It clearly observes some fatigue for tariffs”and the uncertainty about the final result of commercial negotiations “probably [limita] greater significant bullish potential in the valuations. “
He also warned that, although recent holders can support a bullish perspective, “The bar for positive surprises in tariffs has probably risen“
Even so, with slightly positioned investors and the season of presentation of practically complete results, “the trade of hope, although it seems extended, may not end.”
Ultimately, analysts suggest that “more investors could fall into the group to pursue the rally instead of fading it,” provided that there is still a path to the negotiation of agreements. “The mantra ‘do not fight against Trump’ is working,” Barclays concluded.
Source: Ambito
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