UBS Macro Monthly August 2019 | Q&A on recent market developments

The most recent step-up in trade tensions heightens the risk of a non-linear escalation and we remain cautious on global equities. That said, we are not concerned about China’s authorities allowing the yuan to depreciate past 7, nor the US’s largely symbolic decision to label China a currency manipulator. At this point, the state of trade talks can improve just as quickly as it can deteriorate.

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