Global stocks take a beating as fears of trade war increase

FEARS of a trade war between the world’s top two economies weighed on world stocks yesterday.

“European equity markets are under pressure after China revealed a fresh round of tariffs,” David Madden, a market analyst at CMC Markets UK, said.

“It would appear that gloves are off in relation to the trade war.”

European stock markets were in the red after most Asian indices ended with losses.

Investors brushed off data show- ing that Europe’s economic recovery was gaining pace, with eurozone unemployment at its lowest level since December 2008 and inflation on the rise.

Earlier yesterday, Tokyo and Sydney bourses managed to cling on to slim gains.

“Buying remained limited as investors are still concerned about several uncertain elements, including a US-led trade war,” Hikaru Sato, senior technical analyst at Daiwa Securities, said.

The prospect of a trade war be- tween the US and China “continues to cast a dark shadow over global capital markets”, warned Stephen Innes, an analyst at OANDA.

A volatile session on Tuesday on Wall Street saw US stocks indices finish with a strong rally.

The Dow Jones Index closed up 1.7% and the broad-based S&P 500 was up 1.3%.

The tech-heavy Nasdaq also finished in the black, up 1.0%, mainly on bargain-hunting after suffering a pummeling in recent days. – AFP