Global stocks plunge as Trump fuels trade war

Paris - Europe's equity benchmarks sank 1 to 1.5 per cent and Wall Street futures were pointing to similar declines.

Global stock markets tumbled on Tuesday on rising fears of a trade war after US President Donald Trump threatened fresh tariffs on Chinese imports and Beijing warned of countermeasures.
Trump has asked the US Trade Representative to identify $200 billion worth of imports to be targeted, adding he would hit a further $200 billion if Beijing retaliates.
The US and China, the world's top two economies, already announced on Friday tit-for-tat measures on goods valued at about $50 billion as the US president pushes ahead with his protectionist America First agenda.
Asian stocks wilted to a four-month low and Australia's dollar, South Africa's rand and the euro were among a diverse group of currencies caught in the crossfire.  Chinese stocks fell almost 4 per cent while the yuan also hit a five-month low overnight. Europe's equity benchmarks sank 1 to 1.5 per cent and Wall Street futures were pointing to similar declines.