European stocks register second weekly gain even after Trump threatened China with additional tariffs

European stocks finished lower on Friday, but registered a second straight weekly gain, after U.S. President Donald Trump threatened China with additional tariffs.

The White House announcement unsettled markets, ratcheting up the possibility of a prolonged trade conflict, after a week of tit-for-tat moves by Washington and Beijing.

The Stoxx Europe 600 slipped 0.4%, erasing a small part of a 2.4% rise logged on Thursday, when the index rallied to its best one-day percentage gain since June 19, 2016 on an easing in trade-war worries. For the week, the panEurope gauge rose 1.1%, marking its second weekly rise in a row.

U.S. stocks ended the week with a deep selloff, leaving them lower for the five days as the White House’s latest trade bluster rattled global financial markets.

The S&P 500 Index plunged more than 2 percent and all 30 members of the Dow Jones Industrial Average retreated as President Donald Trump ordered a review of additional tariffs that prompted an aggressive response from China. Treasury Secretary Steven Mnuchin added to the anxiety by saying there’s a “level of risk” the spat could worsen.

Trump said the market turmoil was shortterm “pain,” but insisted the outcome would leave the U.S. in a better position. The president’s top economic adviser said the U.S. and China are holding “back-channel discussions” to resolve an escalating trade dispute that has unsettled global financial markets. China earlier said no talks were ongoing.

The S&P 500 fell 2.2 percent as of 4 p.m. in New York, capping a 1.4 percent drop in the week. The Nasdaq Composite Index slid 2.3 percent and the Dow lost 2.3 percent. The MSCI All-Country World Index fell 1.2 percent.

West Texas Intermediate crude dipped 2.5 percent to $61.94 a barrel. Gold futures rose 0.6 percent to $1,336.70 an ounce.