Jamie Dimon blames the trade war for market selloff

JP Morgan Chase's chairman and CEO said on Thursday that current market volatility may be due to various reasons, such as political risks and oil prices, but the problem is mostly in the war.

"How much worse can happen?" Dimon asked his question in an interview with CNBC. Dimon said that traders, investors and other market participants are trying to understand what they are trading on as events and news, and so to make their forecasts clearer.

The US economy is strong, says Dimon. Companies continue to work hard, consumption is good, unemployment is low. But stocks are extremely volatile.

The US under the Trump administration was involved in an escalating trade war with China, although the two sides were talking about a 90-day deadline that began on December 1 to find a way out of the situation.

For Dimon it is rather a skirmish. But it has forced business leaders to find new local networks and rethink their investment plans. "These things just create insecurity that causes volatility."

He does not expect an agreement between Beijing and Washington over the next three months, but he will certainly

but progress on the negotiations. He estimates the chance of reaching an agreement at 60% but says there is always the risk of something going wrong. "This uncertainty is simply not healthy for the markets."

Source CNBC

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