We believe that the most recent step-up in trade tensions heightens the risk of a non-linear escalation and we remain cautious on global equities. We are of the view there should be more risk premium reflected in the US dollar, given the change in US foreign exchange policy and intervention risks.
 
Global markets remain fluid amid the US-China trade war escalation, the depreciation of the Yuan past 7 per dollar, and the US labeling of China as a currency manipulator. There are a lot of moving pieces, so we deliver this Macro Monthly in a Q&A format to efficiently share our thoughts on recent developments and what it means for asset allocation.