NEW YORK: Stock markets were in gloomy mode Tuesday (Mar 4) as China, Mexico and Canada hit back at US tariffs and fears grew that Europe could be President Donald Trump’s next target in the growing global trade war.
Wall Street stocks tumbled for a second straight session while European markets closed down sharply amid worries a prolonged trade spat may knock the world economy out of kilter.
Frankfurt plunged more than 3.5 per cent for its worst session in almost three years, while London shed 1.3 per cent and Paris gave up 1.9 per cent.
“The headlines surrounding an impending global trade war have become too loud to ignore on the once-booming trading floor of Frankfurt,” noted Konstantin Oldenburger, analyst at CMC Markets.
“The sounds of trade disruptions are growing louder and are becoming increasingly difficult to ignore, even though Trump has yet to impose any direct tariffs against Germany or the European Union.”
Of the 11 industrial sectors in the S&P 500, 10 finished in negative territory, with technology flat.
The biggest losers in the Dow included Boeing, which slid 6.6 per cent, 3M, which dropped nearly 5 per cent and American Express, which sank 4.1 per cent.
“The longer the tariffs last or are in effect, the longer that this market will decline,” Sam Stovall of CFRA Research said.
“Investors are worried that we are headed for a recession and a bear market.”
Source: CNA
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