Global stocks and US bond yields fall as US-China trade war rapidly escalates
Trade fears slam stocks and commodities with investors eyeing safe-haven assets; Trump threatens China with new tariffs with China shares closing almost 4% lower
New York — Global stock markets tumbled and US bond yields fell on Tuesday while the dollar rose as investors flocked to safety in the face of a rapidly escalating US-China trade conflict. Agricultural commodities were also hammered with soybeans feeling the most pain after US President Donald Trump threatened to impose a 10% tariff on another $200bn of Chinese goods. China’s commerce ministry described the threat as "blackmailing" and said Beijing would fight back with "qualitative" and "quantitative" measures. Government bonds and the yen rallied as investors sought protection. Oil futures also pulled back with US crude seeing the deepest declines. Wall Street’s three major indices were lower, though the S&P 500’s decline was much more measured than that of overseas markets. In China, the Shanghai Composite Index slumped nearly 5% at one point. "The administration has said the sabre rattling on trade is a negotiating tactic and that Trump isn’t going to create a trade war. That’s ...
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