There Is a Real Trade War Coming Here, Says CMC Markets' McCarthy

The video discusses the market's reaction to ongoing trade tensions, highlighting that while U.S. markets remain near all-time highs, Asian markets, particularly China, have seen significant adjustments. The Chinese market is preparing for potential escalation, reflecting official sentiment. The economic impact could be significant, with potential GDP reductions and investor sentiment shifts. However, a global correction in risk assets seems unlikely unless secondary effects occur. The focus is on adjusting expectations rather than anticipating a meltdown.

What does the speaker suggest about the future of market reactions?

What factors could lead to a global-wide correction in risk assets according to the discussion?