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World markets tumble amid US-China trade tensions

May 8, 2019 3:46 pm

Stock markets around the world have slumped after US President Donald Trump’s unexpected threat to impose new tariffs on Chinese exports.

In the US the Dow Jones ended 1.8% down while London’s FTSE 100 fell 1.6%.

The US president has vowed to double tariffs on $200bn of Chinese goods, amid claims Beijing is trying to row back on a trade deal.

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But Chinese Vice Premier Liu He is still scheduled to visit Washington this week for trade talks.

Yesterday investors sought shelter in safer government bonds and the Japanese yen.

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