Global stocks tumble as Trump’s tweets on China rattle markets
Investors dump risky assets after Trump spooked investors on Sunday, announcing a surprise US tariff hike on $200bn worth of Chinese goods
London — European stocks tumbled to a one-month low and German bond yields slipped back into negative territory on Monday after US President Donald Trump threatened to raise tariffs on China, triggering a global rout in risky assets. In a surprise twist on Sunday, Trump said he would hike US tariffs on $200bn worth of Chinese goods this week and target hundreds of billions more soon, signalling a major shift. Trump had earlier cited good progress in trade talks and praised his relationship with Chinese President Xi Jinping. Global investors were caught off guard as they had been largely expecting the two sides to reach a trade agreement soon. “The market was caught on the wrong foot as everyone expected talks were heading in the right direction and almost close to finishing,” said Daniel Lenz, a rates strategist at Commerzbank. “This was totally out of the blue and the reaction is that we have more risk aversion today.” The latest episode in the trade war comes on the back of weeks ...
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