Major US equity indices kicked off a new week/month/quarter on a downbeat note amid persistent worries of a trade war between the US and other major economies.
Trade-related headline continues to drive investors’ sentiment surrounding riskier assets – like equities, with the US President Donald Trump’s latest threat to impose global auto tariffs, and possible retaliatory measures by the EU, triggering a fresh wave of global risk-aversion trade on Monday.
Traders also tracked the prevalent weaker sentiment around European equity markets, which traded with a negative bias on the back of German coalition crisis and escalating row over the current immigration agreement.
Uncertainty over trade policy, which is seen as providing a significant headwind to global economic growth, had been one of the key factors behind the recent trading in both direction and would remain the focal point in the near future.
During the opening hour of trade, the Dow Jones Industrial Average was down over 170-points to 24,095 and the broader S&P 500 Index slipped nearly 15-points to 2,704. Meanwhile, tech-heavy Nasdaq Composite Index lost around 35-points and was last seen trading well below the 7,500 mark.
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