The attached note looks at the US-China trade war and its impact on investment markets.

The key points are as follows:

  • The trade war between the US and China is escalating, posing a rising threat to global growth.
  • Although we remain of the view that a deal will be reached, the risk has increased.
  • Share markets may need to fall further in the short term to remind both sides of the need for a deal and get them talking again.
  • However, we regard the fall in share markets as another correction rather than the start of a major bear market.

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