Stock markets fall amid trade fears

Stock markets have fallen in favor of further deterioration in US-Chinese trade relations.

Voltages in Germany's coalition government over migration policy added to investors'

Wall Street's Dow Jones and S & P 500 were 0.4% and 0.2% down, even shares pulled back from losses.

Earlier, Frankfurt's Dax Fell 1.4%, while Paris' Cac Fell 0.9%, and Madrid shares slipped 0.8%.

China retaliated, saying "The FTSE 100 is back to the end of the world. it would be an additional 25% tariff on more than 600 US products worth $ 50bn.

There were no signs of the trade row easing on Monday, with US Secretary of State Mike Pompeo calling China's trade practices "predatory economics 101".

In remarks to the Detroit Economic Club, he said statements in Beijing in recent weeks that it was moving to open its economy were "a joke".

• Chinese mock Trump over tariffs
• Is this Angela Merkel's moment of

Earlier, Japan's Nikkei had closed 0.8% lower on Monday, while South Korean shares fell

However, stock markets in China and Hong Kong were closed for a public holiday.

"Tensions between the US and China are escalating," said David Madden, market analyst at CMC Markets

Art Hogan, chief market strategist at B. Riley FBR in New York, said: "The trade war is definitely on the front burner right now, and will continue to be in the absence of news and catalysts. .

European investors are also wa ry of political factors in Germany, where Chancellor Angela Merkel has clashed with leaders of her coalition ally in Bavaria, the CSU, over her refugee policy.

"With the US-China trade war already creating an uncomfortable trading atmosphere, the brewing "Connor Campbell, Financial Analyst at SpreadEx

Sterling Continued to Struggle, Trading Against the Dollar at $ 1.3241 – close to the political tension between long-time allies the CDU and CSU in Germany seven-month low of $ 1.3205 hit late last month.

The pound has fallen 8% since mid-April as traders become less confident that the Bank of England will follow the US Federal Reserve by.

Oil prices gaining ground with greater price, with Brent crude up more than $ 1 to $ 74.50 a barrel despite suggestions that Opec would increase production later this year.

Countries in the oil -producing cartel led by Saudi Arabia – along with other big producers including Russia – will meet in Vienna later this week.

Commerzbank commodity analyst Carsten Fritsch said: "That production will be increased in the second half of the year is considered certain – the only question is by how much."

Goldman Sachs expected Opec One million barrels in the world by the end of 2018.