Possible scenario
Accidental Maritime Clash
17% Chance
A navigation error, aggressive maneuver, or misread command leads to a physical incident between Chinese and U.S. or Philippine vessels. This is less likely than a managed standoff but credible given the recent pattern of collisions and close-quarters operations around Sabina Shoal.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
- Copper Down
Secondary impacts
- Technology
Portfolio impact
S&P 500-1.2%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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