Sunday 18 November 2018

Markets slide on US-China trade spat

A screen displays a chart as traders work on the floor of Buenos Aires Stock Exchange, Argentina. Photo: Reuters
A screen displays a chart as traders work on the floor of Buenos Aires Stock Exchange, Argentina. Photo: Reuters

Reuters

Global stocks slid on Monday and US oil prices slumped after US President Donald Trump announced tariffs on Chinese goods and Beijing responded with similar measures in an escalating trade dispute.

Fears the spat between the world's two largest economies could intensify added to pressure on oil prices, which extended Friday's big fall into the start of week, while the dollar retreated from a seven-month high against a basket of currencies.

The MSCI world equity index which tracks shares in 47 countries, fell 0.37pc, nearing a seven-day low.

Mr Trump announced tariffs on Friday on $50bn of Chinese imports, including cars, starting on July 6.

China said it would retaliate immediately by slapping duties on American export products, including crude oil, and suspend all previous trade agreements with Mr Trump's administration.

The exchange of blows between Washington and Beijing has heightened fears of a protracted dispute that could hurt global growth and particularly Europe, given that Mr Trump has signalled he wants to impose tariffs on automotive exports.

Those concerns saw European bourses start the week in the red.

In Ireland, the Iseq Overall Index fell 0.54pc to 7,090.01. Notable movers included CRH, which shed 1.7pc to €31.79. Shares in travel software firm Datalex fell 3.5pc to €2.75 despite saying in advance of its AGM that its trading is in line with expectations. Shares in financial services firm IFG soared more than 7pc to €1.51. Baked goods firm Aryzta slid 5pc in Dublin to €12.70.

The UK's FTSE-100 was flat for the session. Germany's DAX was down 1.3pc and France's CAC-40 declined 0.9pc.

Irish Independent

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