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Reignited trade war fears push European markets lower

European markets have edged down this morning after President Donald Trump reignited fears of a trade war, threatening to impose a further $100bn (£71.3bn) of tariffs on China.

On the UK's blue-chip index, top copper producers including Glencore, Antofagasta, Rio Tinto and BHP Billiton, were down between one and two per cent each.

China is the world's top copper consumer, and earlier this week it announced retaliatory tariffs on $50bn (£36bn) worth of US goods, including vehicles and soybeans.

In response to Trump's ramped up threat today, China said it will fight back "at any cost".

At the time of writing, the FTSE was down 0.13 per cent at 7,190.09, while the pan-European Stoxx 600 index was trading 0.45 per cent lower.

"Dealers are fearful this will result in a full-blown trade war, and equities are feeling the pain. Even though investors are cautious, volatility could remain low until the US releases the non-farm payrolls report at lunchtime," said David Madden, market analyst at CMC Markets UK.

Oil prices were also lower as the global tit-for-tat ramped up, dampening investor sentiment. Having fallen around 0.7 per cent earlier in the day, at the time of writing the price of Brent crude, the global benchmark, was down 0.38 per cent, edging back over $68 a barrel.

West Texas Intermediate, the US benchmark, was 0.28 per cent lower at $63.36 a barrel.

Read more: Oil prices slip two per cent after China steps up trade war with the US

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