1 day Ago By NEWS WIRE
New York - Equities and oil prices extended a global rout for markets Friday after China hit back over President Donald Trump’s tariff blitz with its own mammoth levy on US goods, inflaming international trade war fears. The Chinese government said Friday it would impose an additional 34 percent tariffs on all imports of US goods, making it the first major nation to unveil retaliatory measures. Despite the market turmoil, Trump insisted that “my policies will never change” and urged the US Federal Reserve to cut interest rates.
Meanwhile, Wall Street stocks endured another bruising round of selling, with the S&P 500 sinking six percent and the Nasdaq falling into a bear market, defined as a 20 percent drop from a recent high. “We’ve essentially got an escalating trade war,” said Jack Ablin of Cresset Capital. “We’re at the beginning of a global slowdown if these tariffs remain in place.
” The losses increased somewhat following remarks from Federal Reserve Chair Jerome Powell on Friday, who warned of the risk of higher unemployment and higher inflation due to tariff increases he characterized as “significantly larger than expected”. Allama Iqbal Express derails near Kotri, no casualties reported Wall Street investors shrugged off data showing the US economy added 228,000 jobs last month, much higher than analysts expected. “Sentiment is so fragile right now,” Chris Beauchamp, chief market analyst at online trading platform IG, told a wire service.
“Investors are firmly in the ‘get me to cash now’ phase, on fears that other nations will follow China’s lead, and of course that the US president will respond to China’s tariffs with even more charges,” he said. “This trade war is like nothing we’ve seen for years, perhaps decades.” European markets ended the day sharply lower, with Frankfurt and London sinking nearly five percent.
The dollar rebounded against the euro and pound, having fallen sharply Thursday on fears of a recession in the United States. But oil futures plummeted around seven percent, having already plunged some six to seven percent Thursday on the prospect of weaker demand. News that OPEC+ had unexpectedly hiked crude supply more than planned added to the heavy selling.
Two PPP workers die in road mishap The price of copper — a vital component for energy storage, electric vehicles, solar panels and wind turbines — also fell sharply. Beijing on Friday also imposed export controls on seven rare earth elements, its commerce ministry said, including gadolinium — commonly used in MRIs — and yttrium, utilised in consumer electronics. “Another jolt of fear has shot through markets as China’s threat of retaliation has materialised,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“The big concern is that this is a sign of a sharp escalation of the tariff war which will have major implications for the global economy,” she said. Tags: stocks oil slump.
