Finance
Global stocks plunge lower after Trump’s sparks US bloodbath
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Asian markets tumble after Trump signals reignited
trade-war tensions, following a bloodbath in US stocks
markets. -
Trader sentiment has dragged as fears about global
growth and the US economy resurfaced.
European equities took a hit Wednesday, following Asian stocks
lower as economy and US-China trade-war jitters gripped financial
markets.
In the US, the Nasdaq and S&P 500 each tumbled more than 3.2%
amid growing doubts that a trade deal could be thrashed out
between the US and China. A wonky indicator called the
“yield curve” also flattened, signaled a weaker outlook for
economic growth and fears about a recession.
President Donald Trump on Tuesday threatened to place “major
tariffs” on Chinese goods entering the US, demolishing an uplift
in market sentiment after last week’s G20 summit in Argentina.
Read more:
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The Shanghai Composite index closed down 0.6% Wednesday. European
shares followed, with the Euro Stoxx 50, Germany’s DAX and
France’s CAC all down 1%. Fears remain that a US-China trade deal
will not be struck in the 90-day negotiating window agreed by the
two sides.
Some analysts suggested that Monday’s gains were overdone, given
Trump’s previously barbed comments.
A minor relief rally in US index futures may be masking continued
market uncertainty amid the longest bull market since the depths
of the financial crisis.
“There is a strong chance now that the buy the dip
mentality has flipped into a sell the rally approach,” said Neil
Wilson, chief markets analyst for markets.com.
Oil investor sentiment tracked that of equities. Brent
crude is down 1.6% as of 8.45 a.m in London (3.45 a.m EST) as
renewed uncertainty about the substance of potential supply
freezes or cuts from Saudi Arabia lingered on markets ahead of
OPEC’s summit in Vienna on Thursday.
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