Global shares dipped on Wednesday as the escalating trade war between the U.S. and China drifted investors’ attention away from risky assets.
Trade worries remained predominant today after causing heavy losses on Wall Street overnight, as expectations are currently in favor of seeing no trade deal.
Asia stocks declined on Wednesday, where Chinese stocks led the losses as an unexpected fall in China’s exports added to concerns.
China CSI 300 index slipped 1.43 percent to end the session at 3,667.46, the lowest closing in two months.
An economic report from China signaled an unexpected fall in exports in April, reflecting the slowdown in global demand on Chinese goods.
European stock markets fell to a five-week low on worries over the US-China trade war, where the Euro STOXX 600 dropped 0.31% to 380.54.
Equities on Wall Street are predicted to post fresh losses when trading begins in around three hours.
The Cboe Volatility Index (VIX) hit a fresh high of 21.09 on Tuesday, marking its highest level since January 22.
Markets turned the risk off mode after U.S. President Donald Trump’s tweeted that current tariffs of 10 percent on $200 billion of Chinese goods would be raised to 25 percent and threatened to impose an extra 25 percent levy on another $325 billion worth of products “shortly.”
U.S. Trade Representative Robert Lighthizer told reporters that the U.S. will increase levies on Chinese imports on Friday.
A Chinese delegation led by Vice Premier Liu He
will visit Washington for further trade talks on Thursday and Friday,
yet markets are not sure whether this round of talks would break the impasse.