Goldman warns a pointy US economic slowdown subsequent 12 months may see monetary markets working 'scared'

clean signals of slowing global boom, and emerging pockets of weak spot within the U.S., rattled economic markets ultimate week.

And the sell-off continued Monday, with weaker-than-expected facts from the U.S., China and Japan adding to mounting concerns in regards to the international financial outlook for 2019.

"We expect the U.S. to gradual all the way down to less than 2 p.c with the aid of the conclusion of next yr and as a result of that you just might see the market getting reasonably scared," Christian Mueller-Glissmann, senior multi-asset strategist at Goldman Sachs, told CNBC on Monday.

international fairness markets could struggle to come back to terms with a dramatic slowdown from the area's greatest economy next year, one Goldman Sachs GSBD strategist informed CNBC on Monday, with trade tensions elevating the risk of close-term volatility.

fresh indications of slowing world boom, and rising pockets of weak spot in the united states , rattled monetary markets final week. And the sell-off persisted Monday, with weaker-than-expected statistics from the U.S., China and Japan including to mounting concerns about the international economic outlook for 2019.

"next year is going to be challenging because I feel probably the most key adjustments to this 12 months is that the U.S. is going to slowdown," Christian Mueller-Glissmann, senior multi-asset strategist at Goldman Sachs, told CNBC's "Squawk box Europe" on Monday.

"We predict the U.S. to sluggish right down to lower than 2 percent by way of the end of subsequent yr and as a result of that you just could see the market getting fairly scared," Mueller-Glissmann referred to.

IMF sees no signals of a US recession

U.S. fairness futures had been seen down 0.three % Monday morning, including to losses from final week that saw the Dow Jones Industrial general erase its good points for the 12 months. At one factor, the Dow turned into up more than eight percent for 2018.

On Friday, wage raise figures and jobs statistics compounded concerns over U.S. economic boom for 2019.

Non-farm payrolls closing month accelerated via 155,000 jobs final month, missing analysts' expectations of round 200,000. And the wage raise became additionally softer-than-expected despite its annual upward push hovering close to degrees no longer viewed in well-nigh a decade.

regardless of particularly susceptible economic information within the U.S. triggering a different wave of marketing in economic markets, the managing director of the foreign financial Fund (IMF) pointed out Thursday that she did not see any trigger for alarm .

chatting with CNBC's Sara Eisen in Washington last week, Christine Lagarde noted: "I don't see the aspects of a recession in short order… We nonetheless have a robust increase forecasts for next 12 months for the U.S."

alternate tensions

meanwhile, including to issues about a likely financial slowdown, market individuals are additionally intently monitoring exchange negotiations between Washington and Beijing.

U.S. trade consultant Robert Lighthizer talked about Sunday that talks between the two facets should attain a successful conclusion by March 1, following conflicting comments about no matter if a tough time limit had been agreed.

inventory markets were already reeling amid reviews that Canadian officers had arrested the CFO of chinese telecoms giant Huawei for extradition to the U.S., with the information threatening to derail progress in U.S.-Sino alternate talks.

"The issue we have of path is that the change information flow continues to be vital in using near-term volatility and it does not suppose like you have any stabilization," Goldman Sachs' Mueller-Glissmann observed.

"We do not predict a comprehensive alternate deal to come back out within the very close-time period so … I feel rising markets may be rather unstable."

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