BUSINESS European stocks drop on fears of new trade war escalation

BUSINESS

European stocks drop on fears of new trade war escalation

AFP

20:33, September 11, 2018

Europe's stock markets slid Tuesday on fears of a new escalation in the burgeoning trade war between China and the United States, dealers said.

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(Photo taken in Frankfurt, Germany on May, 18, 2017. VCG)

Frankfurt equities fell 0.6 percent and Paris shed 0.3 percent, while London lost 0.6 percent despite data showing that Britain's unemployment rate held at a 43-year low of 4.0 percent.

"The European indices took a tumble after it was reported that China is seeking permission from the World Trade Organization to impose sanctions on the United States, relating to America's non-compliance with a dumping duties ruling tracing back to 2013," said Spreadex analyst Connor Campbell.

"This news immediately sparked fears that the next round of trade war escalation is not far off.

"The Dow Jones (Industrial Average) is set to join them in the red once the bell rings on Wall Street."

President Donald Trump had already ramped up the China-US tariffs row late last week by threatening to tax all imports from the Asian giant, sending equities further into the red on Monday.

While some investors are returning to pick up bargain stocks, ongoing worry about a possible full-blown trade war between the world's top two economies is keeping a lid on prices.


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