Sobering factory surveys and political antics suck world shares lower
There was no let-up for bruised investors, after the worst first half since 2010 — but US and German bonds are attracting a lot of safe-haven buying
London — A renewed slide in Chinese shares and a sobering set of factory surveys sucked world shares lower on Monday, while European markets and the Mexican peso were both jolted by political developments at home. It was the first day of the new month, quarter and half-year but there was no let up for bruised investors after the worst start to a year for world shares since 2010. Shanghai’s bear market lurch continued overnight, with losses of up to 3% as companies await about $34bn of US tariffs on Chinese goods this week, and as new business surveys showed some worrying signs of deterioration. Europe started with a thud too, with the pan-European STOXX 600 index dropping 1% and the euro down 0.5% against the dollar at $1.1630 as the stability of Germany’s coalition government remained in focus. Trade war worries were compounded by an EU threat to hit the US with almost $300bn in retaliatory tariffs and by data which showed the weakest eurozone manufacturing growth in 18 months. Eur...
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