Global stock markets sell off as Mexico tariffs fuel recession fears.
Global stock markets sell off as Mexico tariffs fuel recession fears. European stock markets sold off, following a weak session in Asia, as risk aversion spiked following President Trump's announcement that Mexico will be hit by 5% tariffs, rising gradually to 25%. This is part of Trump's war against immigration, but added to concerns that the U.S., and indeed the world economy is heading for recession amid escalating geopolitical tensions especially after China's manufacturing PMI fell more than expected and is now in contraction territory. Japanese markets in particular were hit overnight and Topix and Nikkei lost 1.3% and 1.6% respectively. The Hang Seng declined -0.8% and CSI 300 and Shanghai Comp also lost early gains and closed with losses of -0.3% and 0.2%. The sell off deepened during the European session with weaker than expected data releases adding to growth concerns, while Salvini's posturing in Italy is fuelling fresh Eurozone breakup concerns. As of 10:37GMT DAX and FTSE 100 had lost -1.80% and -1.02% respectively. U.S. futures are down 1.1-1.5% across the main indices and the front end WTI future has fallen back to USD 55.43 per barrel.