Trump's trade war drives Aviva Investors to reduce EM exposure

'The biggest threat to global markets'

Aviva Investors has reduced its exposure to emerging markets equities as protectionist rhetoric from US policy makers continues to pose "the biggest threat to global markets".

US intentions to impose tariffs on $34bn of Chinese goods, with threats to extend the measures to up to $400bn of Chinese inventory, are yet to be imposed. However Aviva Investors said in its third-quarter outlook that if the current war of words between the two major economies escalates into a "full-blown trade war", growth expectations would "fall sharply for large exporters - including China, Japan, emerging Asia and the eurozone". 'A policy mistake of gigantic proportions': Markets and experts react as China hits back at Trump's trade tariffs According to Aviva Investors, the t...