London: Stocks fell as investors grappled with the latest American threats to expand tariffs on Chinese goods. The dollar slipped after Friday’s gains and emerging-market currencies declined.

Futures on the S&P 500, Dow and Nasdaq all pointed to a slight dip at the open while shares in Hong Kong and China led declines in Asia on news that President Donald Trump instructed aides to proceed with tariffs on about $200 billion more in Chinese products.

Storm damage in Hong Kong added to the gloomy outlook. Japanese markets were closed for a holiday.The Stoxx Europe 600 Index swung from a loss to a gain and back, though fashion store Hennes & Mauritz AB beat forecasts to help retailers buck the generally downbeat mood. Italian bonds rallied while other European debt held steady with US Treasuries. Sweden’s krona climbed versus major peers as Riksbank members warmed to higher rates.

The outlook for global trade — which appeared to improve last week on reports the US and China may enter fresh talks — has quickly turned sour after people familiar with the matter said Trump gave his aides instructions to proceed with more tariffs. China is considering declining the US administration’s offer of negotiations later this month after the fresh threats from Washington, the Wall Street Journal reported.

Elsewhere, oil climbed while copper and nickel dragged down industrial metals. Emerging-market stocks weakened and their currencies were led lower by led by a slide in India’s rupee, Turkey’s lira and South Korea’s won.

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