According to Danske Bank analysts, the global macroeconomic backdrop has weakened significantly, following the escalation of the trade war between China and the US.

“We see further downside for the global economy in the coming months, followed by a stabilisation and modest rebound on the back of monetary and fiscal stimulus and we have downgraded our growth trajectory for both advanced and several emerging markets with the risk of a more pronounced slowdown having increased, but there is also positive risk, including a sudden resolution of the trade war.”