World stocks take a hit on renewed US-China trade animus

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World stocks take a hit on renewed US-China trade animus
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Most Asian stock markets ease along with S&P futures as European shares fall 0.5%, with recession fears creeping back in

London — World stocks were knocked off 22-month highs on Wednesday as a renewed flare-up in China-US tensions and the creeping return of US recession fears fueled a bid for bonds and other “safe” assets such as gold.

US President Donald Trump also threatened to up tariffs on Chinese goods if a trade deal is not reached soon. “I think we are looking at a short-term setback rather than a major issue that would derail the process. The bill still has to be signed into law by Trump so there’s a high probability he will use it as leverage against China.”

“It was noticeable that fixed-income markets rallied despite equity markets being stable, suggestive of a market that remains cautious about the growth outlook,” ANZ told clients. US crude stocks rose far more than expected, the American Petroleum Institute said, driving Brent crude into a 2.6% slide. Brent fell another 0.5%, edging towards the $60 mark last breached three weeks ago.

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