Sunday, 17 October 2021

London stocks rattled by Trump’s China claim


LONDON stocks sank further Friday after US President Donald Trump lashed out at China over the coronavirus crisis, and amid holiday closures in much of Asia and Europe.

Investors were spooked by comments from Trump indicating he could hit China with further tariffs over its handling of the COVID-19 pandemic, claiming he had seen evidence linking a Wuhan lab to the contagion.

“Trump sharpening his rhetoric against China is unnerving investors, as his team look into retaliatory measures over the coronavirus outbreak,” said City Index analyst Fiona Cincotta.

“The China trade war seems like an eternity ago after coronavirus has dominated market movements with such intensity over recent weeks.

“However, threats of more tariffs from Trump have hit a nerve with the markets and is adding to the downbeat sentiment heading into the weekend,” she added.

Investors in Britain took their cue from earlier losses in Tokyo and Sydney in Asia, where most bourses were also closed.

The British capital’s FTSE 100 index lost 2.3 percent around midday, having already tanked the previous day by 3.5 percent on mounting evidence that COVID was slamming the global economy.

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