Global stock markets tumbled on Monday and the Chinese yuan weakened to its lowest level since December as the trade war between the United States and China escalated.
Global stock markets tumbled on Monday and the Chinese yuan weakened to its lowest level since December as the trade war between the United States and China escalated.
MSCI’s gauge of stocks across the globe shed 1.90%, its biggest one-day drop in more than five months as it touched a two-month low. Wall Street’s main indexes tumbled more than 2%.
China said it would impose higher tariffs on a range of U. S. goods, striking back in its trade war with Washington shortly after President Donald Trump warned it not to retaliate in the long-running trade dispute between the world’s two biggest economies. Trump said he would meet with Chinese President Xi Jinping next month.
Investors piled into safe-haven assets, including U. S. Treasuries and the Japanese yen.
“It’s clear that there is a lot of nervousness around the U. S.-China trade negotiations and concern that it’s really deteriorating pretty significantly and that’s impacting all areas of markets,” said Kristina Hooper, chief global market strategist at Invesco in New York.
