By Raoul Leering, Head of International Trade Analysis
Markets rallied earlier this week on signals that a de-escalation of the trade war is in the making. But risks are still tilted to the downside.
Optimism prevails
Although it has not been the prime focus of attention, US Commerce Secretary Wilbur Ross's optimism last weekend that tariff hikes on European car imports can be avoided signals that serious steps are being taken towards a de-escalation of the trade quarrel between the US and EU. According to Ross, there is hope that plans by European car makers