26th March 2018
Trump sparks global sell-off with China trade sanctions
This week the late news that Donald Trump has singled out China for $60 billion in tariffs, after giving most other countries a pass, has led to a dramatic escalation in trade war fears. While the market had recently begun to tune out most of the news from the White House, this latest announcement has hit a nerve; global stocks began selling off hard, with US and Asian markets reacting especially badly.
For now, the markets are reacting to the news rather than the facts; the actual levies and their impact remains unknown.
The potential trade war has also managed to push Facebook and Cambridge Analytica off the front pages, at least for now. The breaking scandal has added significantly to the bad week for US stocks, with the tech giants losing some of their shine and leading the index lower even before the trade sanctions against China. This might be the excuse governments have been looking for to beef up the regulation of companies like Facebook and Google, which would make this just the beginning of a much tougher time for tech stocks.