New Delhi, May 10 : The global growth will take a hit of as much as 30-40 basis points if the re-escalation of trade tensions between two superpower economies the US and China persist, Morgan Stanley said in a report this week.

The global brokerage house said the re-escalation would be temporary as the market weakness would help bring both sides together. However, it reiterated if the trade tensions continue then the global growth would get most affected via capex and corporate confidence, as can be seen from the last round of escalating trade worries.