US-China trade war brought down stocks of European and American companies
Even the giants of the US - Apple and Intel - were hit
/NOVOSTIVL/ The escalating US-China trade war wiped out more than US$1 trillion of stock market value on Monday, led by losses in the tech sector, after China announced it would respond to US tariff increases with additional duties on US$60 billion of American goods. This article appeared in the South China Morning Post.
European shares lost 1.2 per cent and emerging-market stocks shed 1.7 per cent. The declines were the most severe in the US, with the Dow Jones Industrial Average and S&P 500 both dropping 2.4 per cent. The Nasdaq fell 3.4 per cent, its biggest daily percentage loss of the year.
A battle on the China front is "the last thing" Apple and the tech sector need as investors "digest these threats from the White House and gauge retaliation impact from China over the coming days", said Dan Ives, a New York-based tech analyst with Wedbush Securities.
US tech bellwethers were among the hardest-hit stocks. Intel fell 2.7 per cent, while Apple dropped 5.4 per cent and Caterpillar lost 5 per cent.
The Chinese Ministry of Finance said 2,493 US goods would be hit with a 25 per cent tariff; 1,078 items with a 20 per cent tariff; 974 items with a 10 per cent tariff and 595 items with a 5 per cent tariff.
Goods hit by the highest rate include cooking oils, frozen vegetables, wine, beer and other beverages, as well as industrial minerals and chemicals, textiles and clothing, jewellery, metal products, machinery parts and consumer items ranging from home appliances to condoms.