An escalation in trade tensions between China and the United States could seriously impact global markets, warns Hong Hao, chief economist at GROW Investment Group.
In a recent interview with CGTN, Hong expressed concerns that a worsening trade war could lead to higher bond yields, increased inflation expectations, and a decline in equity valuations worldwide. “One should not be surprised to see substantial heat on currencies, bond markets, and global markets overall,” he stated.
The ongoing trade dispute between the two largest economies has already created uncertainty in global markets. Further deterioration could exacerbate these issues, affecting investors and economies around the world.
Hong’s insights highlight the interconnectedness of today’s economies and the far-reaching implications of international trade conflicts. Young investors and market enthusiasts are advised to stay informed about these developments and consider their potential impact on financial stability.
