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Global stocks fell on Monday, with Wall Street headed for further losses after investor worries over the health of the US economy dragged the S&P 500 to its worst week in six months.
S&P futures were down more than 1 per cent following last week’s 3.1 per cent loss. The Nasdaq 100, which has been hit by a sell-off in big tech stocks in recent weeks, was on track for a similar decline at Monday’s open.
The latest declines, which also knocked markets in Europe and Asia, came after US President Donald Trump on Sunday declined to rule out either a recession or a pick-up in inflation as he dismissed business concerns over lack of clarity on his tariff plans.
“Trump’s tariff policy has been unpredictable with a series of retreats so rapid they almost collide with the next tax hike announcement,” said Paul Donovan, chief economist at UBS Global Wealth Management. “Global growth and trade are under threat.”
In Europe, where shares have outperformed the US this year, the Stoxx Europe 600 index fell 0.6 per cent, dragged down by banks and technology shares.
Germany’s Dax, which hit a string of record highs last week after the country agreed a historic spending package, fell more than 1 per cent.
Investors are concerned that Trump’s on-off trade war is hurting the US economy, with Friday’s disappointing jobs numbers the latest in a run of weak data.
US Treasuries rallied on Monday, as investors sought safe assets. The 10-year Treasury yield, which falls as prices rise, was down 0.06 percentage points at 4.26 per cent.
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