Equity indexes around the world tumbled for a fourth day in a row on Thursday as U.S.-China trade tensions put investors on edge the day before U.S. President Donald Trump was due to raise tariffs on Chinese goods.
Oil prices fell as worries about the trade war outweighed a surprise drop in U.S. inventories. U.S. Treasury yields neared a six-week low while the dollar lost ground against Japan’s yen as investors sought a safe haven currency.
China asked the United States to meet it halfway, while its chief negotiator was in Washington for talks in the hope of staving off a U.S. tariff hike on $200 billion of Chinese goods to 25% from 10% at 12.01 AM EDT on Friday.
Wall Street’s main indexes followed European equities lower after stocks in China tumbled.
“Investors are worried about the clash of the titans,” said Joseph Quinlan head of market strategy for Merrill and Bank of America Private Bank in New York.