Tensions between the U.S. and China are not escalating but there is still “no clear path” towards a deal between the world’s two largest economies, according to Morgan Stanley.
Developments at the G-20 Summit in Osaka, Japan over the weekend on their own do not erase the uncertainty that is weighing on corporate confidence and the broader global economy, the firm said.
“As things stand, we lack clarity on whether real progress was achieved on the sticking points that caused talks to break down in the first place,” Morgan Stanley chief economist Chetan Ahya said in a note to clients on Sunday.
