Goldman: Market shocks will not stop next year

World equity markets will face even greater difficulties amid a dramatic slowdown in the largest economy in the world next year. This will be due to the increasing risk of tensions over the trade war and short-term volatility.

We have fresh signs of slowing global growth and cracks in the US economy. That's what shook markets last week. And spreads continued today after weaker-than-expected data for the US, China and Japan, which further aggravated the prospects for global economic growth in 2019.

The bank's expectations are for the US economy to slow down to 2 percent by the end of next year, and the fear of the markets is reigning. Nevertheless, the International Monetary Fund does not see signs of recession in the United States. On Friday, we saw that wages continued to increase, but employment data in the non-business sector was weaker, which only increased investor concerns.

Meanwhile, trade strains further exacerbate concerns about the possible economic slowdown, and market participants are very careful about how Washington and Beijing are negotiating.

Robert Lighthizer, who led the trade talks on Saturday, said there should be an agreement between the two sides by the end of March. Chaos only intensified after the arrest in Canada of Huawei's chief financial officer, expected to be extradited to the United States. An event that threatens the success of the negotiations.

The bank does not expect a recent firm deal, and according to Goldman, global markets will remain highly volatile.

Source: CNBC

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