Worsening China-US friction, worries over aid to Americans and US businesses and a stumble on Wall Street combined to push world shares lower on Friday.
Germany’s DAX fell 2.2% to 12,814.51, while the CAC 40 in Paris skidded 2.1% to 4,928.63. Britain’s FTSE 100 shed 1.5% to 6,118.53. US markets looked set for a downbeat opening, with the future for the S&P 500 trading 0.5% lower. The future for the Dow industrials also was down 0.5%.
Trump administration officials have escalated their public condemnations of China in the last several weeks, with speeches by FBI Director Chris Wray, Attorney General William Barr and Secretary of State Mike Pompeo.
Earlier this week, the US ordered the Chinese consulate in Houston, Texas closed. On Friday, as expected, China’s Foreign Ministry ordered the closure of the US consulate in the western city of Chengdu.
Shanghai led regional declines, with its Composite index giving up 3.9% to 3,196.77. The Hang Seng in Hong Kong lost 2.2% to 24,705.33.