Citi Says U.S. and China Will Nail Deal, Aiding Commodities
- Bank’s base case sees a trade agreement by end of this quarter
- Outlook for gains underpinned by rising demand, weaker dollar
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The outlook for commodities is bullish, according to Citigroup Inc., which expects raw materials to be supported by a confluence of positive factors including the agreement of a trade deal between Washington and Beijing, improved demand from China, and a weaker dollar.
The bank’s base case is that the U.S. and China will agree to end their protracted trade fight by end-June, paving the way for tariffs to be lifted, analysts including Ed Morse said in a report. A deal between the two economies is now “on course” for the end of the second quarter, the bank said.