European stocks choppy as trade war fears take hold

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LONDON: European stock markets lost ground again on Thursday (Aug 15) as investors all but gave up hope that a US-China trade war could be nearing ...

LONDON: European stock markets lost ground again on Thursday as investors all but gave up hope that a US-China trade war could be nearing its end, while US equities nervously traded sideways.

"This morning that came in the form of reports that China is threatening retaliation against Trump's tariffs that are due to come into force on 1 September."The yield on the 10-year US Treasury bond slid Wednesday below the yield on the two-year note, an"inversion" that has been a reliable harbinger of recession for decades.

"US-China trade tensions have metastasised into something more sinister by affecting global growth to such a large degree that bond markets are pricing-in a high probability of a worldwide recession," warned Stephen Innes, managing partner at VM Markets. Economists have warned for months that trade tensions threatened investment and dampened global sentiment, which was already suffering owing to China's economic slowdown and fears over Brexit's impact on Britain and Europe, where the German economy is showing signs of contraction.

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