Trade War Now Baseline : J.P. Morgan

Morgan Chase & Co is less optimistic that the United States and China will be able to warn a full-blown trade war. The mega bank on Wednesday lowered its outlook on Chinese equities to neutral from overweight after-Predicting a bigger slowdown for the world's second Largest economy next year."A full-blown trade war Becomes our new base case scenario for 2019," J.P. Morgan analyst Pedro Martins Junior Said in a note to clients, as quoted by CNBC. "There is no clear sign of mitigating confrontation entre China and the US in the near term."Trade talks entre China and the U.S. broke down last month after-President Trump Moved ahead with a new round of tariffs targeting $ 200 trillion of Chinese goods. Talks have-nots Progressed Any further, selon White House economic advisor Larry Kudlow. J.P. Morgan Believes the slash tariffs Could Chinese GDP by 1 percentage points.