World stocks sank Friday after U.S. President Donald Trump threatened to impose new tariffs on China over the coronavirus pandemic.
MSCI’s index of global stocks fell 0.4%, breaking a six-day winning streak for the index. London-listed stocks also fell. The FTSE 100 was down 2.1%, wiping out gains posted earlier in the week. Trading volumes were thin with many European markets closed Friday for a public holiday.
In Asia, with many markets also closed, the benchmark Nikkei index fell 2.8%, with declines led by chipmaking firms. Australian shares fell 5%, their most in five weeks. The negative results came after comments from Trump that he was concerned about China’s role in the origin and spread of the coronavirus. He threatened new tariffs on Beijing, and said his administration is drafting retaliatory measures over the outbreak.
Trump’s threat of new tariffs on Beijing sent the Chinese Yuan sliding 0.7% against the U.S. dollar, its biggest drop in a month. The Euro stabilised against the U.S. dollar, while the dollar was down against the Japanese Yen, trading at 106.88 Yen. The Australian dollar fell more than 1% to 0.6438.
Oil prices also fell Friday as weak demand due to the virus and excess supply outweighed a record output cut by OPEC and its allies. Brent crude for July delivery dropped 45 cents, or 1.7%, to $26.03 a barrel, after rising about 11% in April. U.S. crude for June delivery slipped 46 cents, or 2.4%, to $18.38 a barrel.
