Stocks Slump as Trump’s Threat of New Tariffs Scares Investors


A surprise hitch in trade talks between the United States and China spooked investors on Monday, sending global stocks tumbling and raising the prospect of a rough day for Wall Street.

Shares in China led the decline, falling more than 6 percent at one point, after President Trump threatened to raise tariffs against Chinese-made goods to pressure Beijing into reaching a deal. Markets across Asia ended broadly lower as well, while markets in France and Germany were about 1.8 percent lower in early afternoon trading.

On Wall Street, futures contracts that try to predict the performance of shares suggested that major stock indexes on Wall Street would open lower.

Stock markets have picked up in recent months in part on prospects that China and the United States would reach a truce in their trade war. The Chinese economy, the most important growth engine in Asia and one of the world’s largest, has also picked up in recent weeks after a surge of government-driven lending.

Mr. Trump’s comments on Sunday threatened to end that growth, rattling investors across the board. The value of China’s currency weakened, and prices for oil and agricultural products fell.

In China, the Shanghai Composite Index fell 5.6 percent.

In Hong Kong, the Hang Seng Index fell 2.9. Taiwan’s Taiex was down 1.8 percent, while the S.&P./ASX 200 index in Australia was down less than 1 percent.

Markets in Japan, South Korea and Britain were closed for holidays on Monday.

In European markets, Germany’s Dax index and France’s CAC-40 were both about 1.8 percent lower.



Sahred From Source link Business

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