Stocks plummet following fears of a trade war after China has pledged to "fight until the end"

Russell Boyce / Reuters

• Inventories fall after the Chinese defense minister has vowed not to back down in his trade war with the United States.
• "If they want to fight, we will fight until the end," said General Wei Fenghe on Sunday.
• "Traders are increasingly relying on a protracted trade war that is hitting the global economy," said Jasper Lawler of the London Capital Group.
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Asian and European stocks and US futures fell sharply on Monday after the Chinese defense minister vowed not to back down in his trade war with the United States.

"Traders are increasingly being taken into account in a protracted trade war that is hitting the global economy," said Jasper Lawler, head of research at the London Capital Group.

Adding to the concerns: Chinese official media announced a government survey on FedEx, and South Korean exports, considered a canary in the coal for global growth, slowed sharply in May.

Comments from China appeared to intensify the dispute after President Donald Trump announced tariffs on all Mexican imports and the end of the special trade treatment accorded to India, a statute that exempts billions of dollars. dollars of the country's products from US tariffs, according to CNN.

"If the United States wants to talk, we will keep the door open," said General Wei Fenghe on Sunday at the Shangri-La dialogue in Singapore, according to CNN. "If they want to fight, we will fight until the end."

"To intimidate us, not at all," he added.

"Concerns are growing over the fact that the new threats against Mexico and India, accumulated over the trade dispute between the United States and China, could cause the global economy to recession," he said. said Lawler.

China also intends to investigate that FedEx has violated the legal rights of its customers and harmed their interests, after parcels destined for Chinese telecommunications titan Huawei were diverted, according to the Xinhua official Xinhua news agency. This could be seen as a retaliatory measure after the US government put Huawei's blacklist on the spying list, before temporarily releasing the ban.

At the same time, South Korean exports plunged 9.4% in the first 20 days of May, far exceeding the median forecast of a 5.6% decline, according to Reuters.

The decline was probably due to the escalation of the trade war between the United States and China. President Donald Trump accused China of sabotage a draft trade agreement, tariffs on Chinese goods rise to $ 200 billionand began to prepare for extend tariffs to virtually all US imports from China. China has responded with tariff increases on US products worth $ 60 billion in Juneand threatening the US supply of rare earth metals.

Here is the round of the market horizon at 10:03:

• US stocks fell early in the session. the Dow Jones Industrial Average and S & P 500 are down about 0.4%, while Nasdaq dropped about 1%.
• European stocks have fallen. From Germany DAX decreased by 0.2%, the Euro Stoxx 50 slipped 0.1%, and British FTSE 100 decreased by 0.2%.
• Asian indices closed down with the Composite of Shanghai down 0.3%, the SZSE component down 0.7% and Hong Kong Hang Seng almost flat.
• Oil prices remain volatile. After falling suddenly and regaining ground, Brent the crude is flat at around $ 62, while WTI crude increased 0.4% to about $ 53.70.