Global stocks slid on Friday, with persistent global trade worries compounded when Washington suddenly canceled a nuclear summit with North Korea.
Wall Street started the day in the red because after the US announced it would investigate auto imports on national security grounds, a move that could lead to yet more steep tariffs.
The Dow and S&P 500 rebounded off earlier lows but still finished down 0.3 per cent and 0.2%, respectively, while the Nasdaq was flat. While share prices in Frankfurt and Paris started out higher on bargain-hunting, they also ended the day in negative territory, pulled down by a weaker showing in New York.
london ended the session 0.9% lower, Paris slipped by 0.3% and Frankfurt shed 0.9 %.
In a letter released by the White House, Trump informed Kim Jong Un he was cancelling their summit next month in Singapore, blaming North Korea's “anger” and “hostility” for the spectacular collapse of the historic event.
“There are two cases on which the market is really focused. It's trade negotiations and the geopolitical situation with North Korea,” Tom Cahill of Ventura Wealth Management told AFP.
“Donald Trump just backed down on both.” After suffering an initial shock, US stocks recovered much of their losses. But Cahill said each day's lot of worrisome trade headlines could have a cumulative effect on the market. “These conflicts are not dramatic one by one,” he said. “But their accumulation will eventually undermine business confidence and growth.”