American blue chips will grow next year unless the US and China reach an agreement

Wall Street

The US-China trade war reduced earnings per share in $12 according to analysts

Possible end to the trade war would significantly help grow share value.

The current bull’s mood on American and global stock markets will probably remain till next year. Nevertheless, growth in company profits will depend of the US-China trade negotiations according to Dubravko Lakos-Bujas, JP Morgan analyst.

The trade war is affecting shares value already. Lakos-Bujas estimates that the value of American shares is $12 lower that it would be if the trade war was already over. Moreover, value of more than 500 titles included in S&P 500 stock index were affected by the situation.

An average profit of American company shares could grow in 10 % during next year if the situation in the US-China trade war negotiations already calms down. According to JP Morgan Bank analyst stock price volatility could alleviate in Wall Street shares. Loose monetary policy of American FED could make its impact as well.

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