European stocks have fallen into the red as China are to retaliate against $300bn worth of its goods facing US tariffs.
China’s finance ministry said the latest move by President Trump threatening 10% on tariffs breaches a consensus that was reached by both sides. This means the US will apply tariffs to nearly all Chinese exports to the US.
On Thursday morning trading the UK’s FTSE 100 dropped by 0.9%, the French Cac was down by 0.4% while the German Dax fell by 0.6%.
Naeem Aslam of online trader Think Markets said, “The US-China trade war sits at the heart of this problem because this has triggered the slow-down in global economic growth.
“As a result, Central Banks around the globe are facing a serious challenge and in order to combat it.”
On Wednesday the talk of recession spooked the FTSE 100 along with a 0.1% contraction in the second quarter.