The subject of trade wars of the USA and China negatively reflected on world markets. After information about a possible next increase in US duties on Chinese goods and the complete withdrawal of American companies from this market, indices began to fall as early as Friday. US exchanges collapsed immediately by 2.5-3%. This continued on Monday morning. Exchanges in the Asia-Pacific region opened and closed lower.In the red, the Russian market opened. However, later he managed to win back part of the morning losses on the new statements by US President Donald Trump on a trade conflict with China. According to him, the Chinese side got in touch with the American side and expressed a desire to return to the negotiating table, which should happen in the near future. Against this background, European exchanges, opening an hour later Moscow time, have already started the day in positive territory.According to experts interviewed by Prime, the markets have already realized that increased volatility amid trade wars is serious and for a long time.“Since the devaluation of the yuan below the psychologically important mark of 7 per dollar in early August, it has become clear that trade wars are a long-playing story. Investors are ready for a swing with a high amplitude of oscillation,” says Elizaveta Naumova, senior analyst at Alfa Bank.Friday’s decline was sensitive, but it will most likely be won back at the beginning of this trading week. Already this morning, signals have been received from both sides that reduce the degree of voltage.”S&P futures are already responding by 1.14% growth to the news from Trump that China has proposed to sit again at the negotiating table,” Naumova recalled.SPACE FOR MANEUVERHowever, until there is clarity on trade issues, verbal interventions will inevitably recoup, experts are sure. They differently assess the prospects for the development of a trade conflict.“Since the beginning of summer, the market has lost about $ 600 billion in capitalization,” says Iskander Lutsko, the chief investment strategist at ITI Capital. “In this situation, the expert community has split in two: the former believe that it is not worth the agreement and it will only get worse, and the latter, to which I belong, they regard the situation as an attempt by the parties to come to an agreement, albeit with methods that are somewhat atypical for modern democratic countries. “In the end, the space for maneuver is narrowing – the entire volume of Chinese exports to the United States is already at stake, and if it is levied by increased tariffs, there will be no prospects for both countries. The main thing is not to go too far so that the mood of the first category of investors does not prevail – then the flight from assets, mass sales will begin. If the currency markets, which so far feel good, will follow the stock indicators, then global panic and the approach of a recession are inevitable, Lutsk is sure.Naumova believes that China can go further and will use some of the punitive instruments in its arsenal – from the depreciation of the national currency to the dumping of US Treasury securities that are on the balance sheet of its Central Bank. Such a scenario will frighten off investors even more due to the even greater uncertainty and deepening of the conflict.DEMAND FOR PROTECTIONExperts agree that in this situation, investors will continue to increase the demand for defensive assets – US Treasuries, the Japanese yen and gold.”These assets are always popular, even if dialogue can be established on trade issues, the Fed’s rate will inevitably decrease, which will also force investors to seek refuge,” Lutsko argues.Until the published statistics reflecting the state of the economies of the two powers give clear signals of a noticeable deterioration, the mood of investors will be wavelike. In a negative scenario, investors will seek to lose risk, preferring US debt securities, bonds with a rating higher than BBB — developed countries, the Japanese yen and gold, Naumova predicts.