A Détente, Not A Deal: Morgan Stanley On The Current State Of US-China Trade

By Michael Zezas, Morgan Stanley global head of fixed income research

While media headlines may have suggested last week's trade agreement between the US and China was a breakthrough, we think investors need to see it more as a détente than a comprehensive deal. The agreement represents a tactical pause in escalating tensions rather than a resolution of fundamental disagreements.

Why view it this way? Consider: