Markets tumble as Trump says trade wars are ‘good and easy to win’


The market falls are continuing.


The Dow Jones Industrial Average is now down 1.3%, the FTSE 100 has fallen 1.4% and Germany’s Dax is down 2.3%. Chris Beauchamp, chief market analyst at IG, said:

The selling continues apace across markets this afternoon, with the phrase ‘sea of red’ getting an outing once more. It is indeed a ‘risk-off’ afternoon in the old-fashioned sense of the term, with gold being furiously bought as risk assets are dumped unceremoniously overboard.

Tariffs do not go down well, it seems. European markets, with their heavy concentrations of industrial stocks, are suffering a double whammy of US tariff concerns and the return of their old foe, a stronger euro. In London the big news has been the speech from the Prime Minister. As ever, it has generated the usual variety of responses, but the aim of conciliatory approach from the UK runs through the text, emphasising the need for both to come together. Given it has been so heavily trailed there has been little market reaction, and the ball now lies in Brussels’ court.

While Friday harks back to the crisis days of market volatility, the weekend will resemble those of times past too, as markets wait for results from Germany and Italy. Both are important in their own way, and will help set the tone come Monday, although in the case of Italy maybe no government will be better than one committed to disrupting the established order?



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