Stock markets stable after China trade warning
August 16, 2019 5:14 am
Stock markets around the world have stabilised, after fears of a slowing global economy sparked a big sell-off on Wednesday.
The main US share indexes closed 3% lower overnight, but the benchmark Dow Jones was slightly higher on Thursday.
This was despite a warning from China that it would take new countermeasures against US trade tariffs.
However, the picture was more mixed in Europe, with London’s FTSE 100 closing more than 1% down.
There was panic on European, US and Asian markets on Wednesday, after weak data from Germany and grim signs in bond markets raised fears of a global slowdown.
The yield on two-year and 10-year Treasury bonds inverted for the first time since June 2007 in the UK and the US as investors dived into longer-term investments.