A sharp drop in Chinese stocks led global markets broadly lower on Tuesday, as investors digest the impact of trade tensions on the country as well as other geopolitical worries, such as Italy‘s debt problems.
After the Shanghai index closed down 2.3 percent at 2,594.83, European markets traded lower. Germany‘s DAX slipped 1.8 percent to 11,321 and France‘s CAC 40 was 1.3 percent lower at 4,990. Britain’s FTSE 100 lost 0.7 percent to 6,991.
Wall Street is forecast to open lower, with the future for the S&P 500 down 1.1 percent and the Dow future off by 1 percent.
“Risk aversion continues to permeate every pocket of the markets whether triggered by President Trump’s latest tweets on immigration or the blustery headwinds from Riyadh to Rome,” Stephen Innes of OANDA said in a commentary.