Investors in a panic over US-Chinese trade battle

INVESTORS pulled nearly £16bn from global shares in a week that saw trade tensions between the US and China flare up again.

The withdrawals from investment funds in the week to Wednesday was the third-highest figure this year, according to analysts at Bank of America Merrill Lynch.

At the same time, investors piled around £5.6bn into bonds – seen as a safe haven in times of turmoil.

The figures emerged as President Trump yesterday fired off a series of tweets claiming there was ‘absolutely no need to rush’ a trade deal with Beijing, sending shockwaves through global markets.

He claimed that £154bn of tariffs slapped on thousands of Chinese products would make the US ‘much stronger’, adding: ‘Just sit back and watch!’

It sent the Dow Jones index tumbling by 1.4pc early on. But it recovered after US Treasury Secretary Steve Mnuchin said trade talks with China were ‘constructive’.