- China has imposed retaliatory tariffs of 34% on all goods imported from the US.
- FTSE 100 down 3.9%
- DAX down 5.0%
- CAC down 4.2%
- S&P futures down 2.7%
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
“Another jolt of fear has shot through markets, as China’s threat of retaliation has materialised. The big concern as that this a sign of a sharp escalation of the tariff war, which will have major implications for the global economy. The stock shock has shown up in even sharper losses with European indices sinking deeper into the red. Brent crude has also dropped sharply as expectations of a big hit to global growth and energy demand ratchets up.
The UK may appear to have been dealt a better hand in this round of tariffs, but it’s so interlinked with global trade, it’s set to be slammed by the harsh winds blowing through the global economy.
These kinds of market moves can feel incredibly uncomfortable, but anyone who has lived through any market turmoil in the past knows how important it is to focus on your long-term investment horizons and ride out short-term storms.
Investors should ensure they’re well diversified, without too much concentration on a particular market, and with money spread across different asset classes and geographies. Focusing on owning quality companies over the long term will help you see past dramatic short-term market movements.
The strategy of drip-feeding investments by gradually allocating funds can also help in uncertain times. It means investors may be able to take advantage of lower prices and benefit during a recovery, so the market can work in their favour.”
