Global stocks slid on Monday and U.S. oil prices slumped after U.S.
President Donald Trump announced tariffs on Chinese goods and Beijing
responded with similar measures in an escalating trade dispute.
Fears the spat between the world’s two largest economies could intensify added to pressure on oil prices, which extended Friday’s big fall into the start of week, while the dollar retreated from a seven-month high against a basket of currencies.
The MSCI world equity index, which tracks shares in 47 countries, fell 0.3 percent, nearing a seven-day low. Trump announced tariffs on Friday on $50 billion of Chinese imports, including cars, starting on July 6.
China said it would retaliate immediately by slapping duties on American export products, including crude oil, and suspend all previous trade agreements with Trump’s administration.
The exchange of blows between Washington and Beijing has heightened fears of a protracted dispute that could hurt global growth and particularly Europe, given that Trump has signalled he wants to impose tariffs on automotive exports.
Futures on main euro zone benchmarks were trading down 0.2-0.5 percent as investor angst about the outlook for economic growth filtered through to European stocks.
The pan-regional STOXX 600 was on track to relinquish gains recorded on Thursday when a dovish European Central Bank pushed back expectations for an interest rate hike.
Germany’s DAX was down 1.36 percent while France’s CAC 40 declined 1.23 percent.
U.S. light crude oil hit a two-month low of $63.59 a barrel before recovering somewhat to trade at $64.72, down 30 cents, by 1100 GMT.
The producer cartel of the Organisation of the Petroleum Exporting Countries (OPEC), which is de facto led by Saudi Arabia, and some allies including Russia have been restricting output since the start of 2017.
Fears the spat between the world’s two largest economies could intensify added to pressure on oil prices, which extended Friday’s big fall into the start of week, while the dollar retreated from a seven-month high against a basket of currencies.
The MSCI world equity index, which tracks shares in 47 countries, fell 0.3 percent, nearing a seven-day low. Trump announced tariffs on Friday on $50 billion of Chinese imports, including cars, starting on July 6.
China said it would retaliate immediately by slapping duties on American export products, including crude oil, and suspend all previous trade agreements with Trump’s administration.
The exchange of blows between Washington and Beijing has heightened fears of a protracted dispute that could hurt global growth and particularly Europe, given that Trump has signalled he wants to impose tariffs on automotive exports.
Futures on main euro zone benchmarks were trading down 0.2-0.5 percent as investor angst about the outlook for economic growth filtered through to European stocks.
The pan-regional STOXX 600 was on track to relinquish gains recorded on Thursday when a dovish European Central Bank pushed back expectations for an interest rate hike.
Germany’s DAX was down 1.36 percent while France’s CAC 40 declined 1.23 percent.
U.S. light crude oil hit a two-month low of $63.59 a barrel before recovering somewhat to trade at $64.72, down 30 cents, by 1100 GMT.
The producer cartel of the Organisation of the Petroleum Exporting Countries (OPEC), which is de facto led by Saudi Arabia, and some allies including Russia have been restricting output since the start of 2017.
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