Markets Are Too Complacent About Trade War, Morgan Stanley Wealth Says

  • Volatility metrics in semis, S&P 500 at multi-month lows
  • Strategists issue caution on ‘veiled but mounting risk’
Morgan Stanley’s Tan Expects Asia Exports to Moderate This Year
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Markets may be too optimistic about the U.S.-China trade dispute, according to Morgan Stanley Wealth Management.

The implied volatility of some assets that should be highly affected by trade news has been declining even as a further deterioration in the negotiations remains a risk, strategists including Scott Helfstein wrote in a note Tuesday.