Data coming out of the U.S. were also reflecting in which geopolitical tensions were causing economic damage, Carpenter told Tuesday.

“The retail sales number for December was just terrible,” he said. “We think at least part of the item is actually the trade war with China disrupting various firms (as well as) disrupting people’s confidence – as well as when people get worried they tend to pull back. The January number was a little bit higher than maybe you might’ve hoped for, yet the revisions (to the December figure) are truly troubling as well as the item sets the year off to a actually soft tone.”

The U.S. economy has slowed in recent months, with poor data as well as the ongoing trade war with China impacting market sentiment.

While a tight labor market is actually driving up wages, retail sales for December were much weaker-than-expected, job growth stalled in February, as well as the U.S. trade deficit reached a 10-year high in 2018 – despite the Trump administration’s attempts to shrink the gap by imposing tariffs on imports.