The United States stock index futures prolonged their losses after the further increase in trade tensions fueled investors fear and the America Government was blamed by China’s government for the latest fall in trade talks.
After Beijing released a white paper saying the mounting trade war between the two countries, contracts on the S&P 500 Index fell 0.8%. Futures on the Dow Jones Industrial Average and Nasdaq 100 both dropped 0.9%.
The Stoxx Europe 600 Index experienced its lowest intraday level since February 15, led by auto, and oil & gas sector as it slid to as much as 0.9%. After extending its losses and ending May with a 5.7% slump, the Stoxx Europe 600 Index recorded its worst month since January 2016.
After accepting to purchase Cypress Semiconductor, Infineon Technologies retreated 5.4%, while after crude oil futures toyed with the bear market zone, oil stocks hit their lowest level since January.
On Friday after the United States President threatened to place more tariffs on Mexico, the S&P 500 dropped 1.3% as the United States stocks recorded their first monthly decline since December 2018 market rout while the Dow experienced its 6th consecutive weekly loss which is the most prolonged decline since 2011.
China argues that the recent Washington’s trade moves have caused severe harm to the United States economy by causing price hikes, increasing production costs, having an adverse effect on people’s livelihoods, damaging growth and creating barriers to United States exports to China.