Global stocks slide on Trump's trade threats

Credit: Reuters - Business (Amazon FireT
Published on June 3, 2019 - Duration: 01:52s

Global stocks slide on Trump's trade threats

London's main stock market index fell almost 1 percent to a near 12-week low on Monday as an exchange of trade threats between Washington and Beijing stoked fears of a slide into recession within a year, as economic data from Asia again disappointed.

Pascale Davies reports.

Advertisement

Global stocks slide on Trump's trade threats

It's a new month, but the same trade angst seen in May is still wrecking havoc on the global economy.

London's FTSE 100 down over 1% on Monday, a near twelve week low.

Britain's other index the FTSE 250 wasn't helped either, shares in the British builder group Kier crashed 40% after a profit warning.

European stocks-also not off to a good start to the week.

The pan-European STOXX 600 down by 0.6%, with Germany's DAX, which is sensitive to trade risks, down 0.7%, a two month low.

(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING (on TRADE DISPUTE): "The trade war is not over.

Unfortunately that's the situation.

Mr. Trump wants to run for U.S. president again and so he needs ammunition.

The problem is, the Chinese are shooting back.".

Trade fears have grown since President Donald Trump threatened to impose tariffs on all Mexican goods on Friday.

And over the weekend, China warned the U.S. not to meddle in security disputes over Taiwan and the South China Sea.

The escalating trade battle has hit Asian shares particularly hard.

Data released on Monday showed Asia-pacific shares shed about 6.2% in May, the biggest fall since October 2018.

And other sectors vulnerable to the trade dispute were also affected.

Oil giants saw a 1% fall with Shell and BP the biggest losers among blue-chip shares.

Investors will be hoping for some respite this week as Trump visits the UK.

But that may prove difficult as he lands into Brexit uncertainty and as Prime Minister Theresa May steps down on Friday.

You are here

Recent related videos from verified sources

What Bitcoin Taught Government Officials About Facebook's Libra 00:39
Credit: The Street - Published 6 days ago 

US Stocks Climbing As Traders Bet On Rate-cut Hopes 00:32
Credit: Wochit News - Published 6 days ago 

Here's What to Know on Fed's Powell's Two Days With Congress 01:43
Credit: The Street - Published 1 week ago 

Jim Cramer's Weighing in on Bed, Bath & Beyond's Quarter and the Markets 12:23
Credit: The Street - Published 1 week ago 

You might like