Global stocks are currently trading at a 10 percent discount thanks to the trade war -- a gap which could eventually close if reports the U.S. and China are close to a deal are accurate.
Strategists at UBS Group AG including Yianos Kontopoulos isolated the impact of equity moves on “trade shock” days to show the MSCI AC World Index has been hit by almost 10 percentage points since the dispute started. European stocks have been most hit with the Stoxx 600 Index showing a near 13 percentage point impact, and Australian stocks the least with just a 0.4 percent hit.
