Rising market volatility on the heels of U.S.-China trade tensions
MONTHLY MARKET COMMENTARY |
Market volatility has spiked amid heightened focus on U.S.-China trade relations. Risk assets had been trending higher through much of 2019, but higher U.S. tariffs on Chinese goods and increased skepticism about negotiation prospects going forward weighed on markets.
In terms of longer-term market impact, it’s difficult to predict given the fluidity of the situation. While U.S. companies may have been able to weather impacts of a 10 percent tariff, a jump to 25 percent could have more severe implications. We could start to see some weakness in U.S. supply chains that rely heavily on Chinese imports.