The International Monetary Fund warned this week further conflict between the US and China could cause a “sudden deterioration in risk sentiment, triggering a broad-based correction in global capital markets and a sharp tightening of global financial conditions”.
Is this the beginning of the next global financial CRASH?
Wall Street’s 3.2 percent market dropped on Wednesday was enough to send stock market shares into freewill elsewhere – but a global financial crash is not on the cards just yet, according to one business giant.
Axel Weber, chairman of UBS, told CNBC investors’ mood had flipped-flopped from overly optimistic to “too pessimistic” – but this was temporary.
According to CNBS, Mr Weber “recognised global growth was in a late cycle phase, but he did not expect to see a global economic recession”.
On concerns of a possible trade war between Washington and Beijing, Mr Weber said: “I think investors have been spooked.