China markets lead global equities into the tank

A sharp drop in Chinese stocks led global markets broadly lower on Tuesday, as investors digest the impact of trade tensions on the country as well as other geopolitical worries, such as Italy‘s debt problems.

After the Shanghai index closed down 2.3 percent at 2,594.83, European markets traded lower. Germany‘s DAX slipped 1.8 percent to 11,321 and France‘s CAC 40 was 1.3 percent lower at 4,990. Britain’s FTSE 100 lost 0.7 percent to 6,991.

Wall Street is forecast to open lower, with the future for the S&P 500 down 1.1 percent and the Dow future off by 1 percent.

“Risk aversion continues to permeate every pocket of the markets whether triggered by President Trump’s latest tweets on immigration or the blustery headwinds from Riyadh to Rome,” Stephen Innes of OANDA said in a commentary.

ABC News USA

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes