Macro Strategy Views Podcast: Lower equities, higher volatility on trade war escalation

In our Macro Strategy Views podcast, we discuss Friday’s escalation in the US-China trade war and the implications for markets, with a particular focus on equities. Global Head of FI&C Research Thomas Harr chairs today’s podcast, while our Chief Equity Strategist Mattias Sundling joins him Donald Trump’s action on Friday marks a significant escalation of the trade war and raises the risk of an all-out economic war between the US and China. We expect equities to fall and volatility to rise. In our view, the escalation of the trade war should trigger a new leg lower in interest rates, while the JPY is set to outperform.