Moody's: US-China uncertainty may have economic impact beyond direct trade channels

The US-based ratings agency, Moody’s Investors Services, published the latest report, assessing the impact of the US-China trade spat on the global economy.

Key Points:

"Tit-for-tat measures are causing rising uncertainty and political risk.

That will likely have an economic and financial impact beyond what is transmitted through direct trade channels.

Risk of escalation has risen over the last few months.

Believes that the US and China will avoid a dramatic increase in trade restrictions.

Further escalation in trade tensions will likely lead to more volatility in financial markets in the coming months.

Risk of escalation could lead to reduced business investment and lower production efficiency.

Further uncertainty could affect companies' decisions.

Such as global supply chains location, which in turn would affect investment and future export growth."