Possible scenario
Sanctions Enforcement Escalates
15% Chance
Trump decides that Xi's guarantee must be backed by penalties, especially if U.S. agencies can document new post-pledge shipments. The U.S. response remains more likely to target firms and logistics networks than systemically important Chinese banks.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- Copper Down
- US dollar Up
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.
Keeping an eye on this scenario?
Tilt can alert you when its probability or impact shifts, or send you a recommendation when it crosses a threshold.