India, Sept. 4 -- Moody's Investors Service has forecast a high risk of further deterioration in the growth outlook of advanced and emerging market economies due to continuing escalation of the US-China trade dispute.

"An uncertain policy environment is not conducive to investment and the steady escalation of trade tensions will continue to weigh on sentiment, leading to further retrenchment of capital expenditure and weaker growth," it said in the latest global macroeconomics sector comment.

The incremental but continuing escalation of the US-China trade dispute is already adversely affecting economic activity in the United States, China and the rest of the world.

"We continue to believe that at the macroeconomic level, the direct exp...