Investors are growing increasingly worried about a cocktail of risks that could act as a significant drag on the world economy. Potential headwinds include the trade dispute between the US and
Oliver Jones, a markets economist at the research firm Capital Economics, said: “Worries about problems in the US, and to some extent in the past few days
The Dow Jones Industrial Average of leading US companies dropped by more than 500 points in early
European stock markets also fell sharply, with the UK’s FTSE 100 sliding more than 90 points to close below 7,000, ending the day at a seven-month low after another jittery trading session. The leading German stock index dropped by more than 2% and the biggest French companies shed almost 1.7% of their value.
The FTSE 100 has dropped 7% since the end of September, setting the index of
Its investor confidence index has fallen to 53 this month from 58 in September, its lowest level since it began in 1993. It has averaged 92 over the last decade, but only 69 over the last 12 months.
Laith Khalaf, a senior analyst at
“Investors are in grim mood, as time is running out on Brexit negotiations with little progress on show. Sentiment was dented by the financial crisis, but not to the extent we are seeing today,” he said.
Stephen Innes, the head of
It said tariffs will cost it about $40m (£31m) in the latest quarter, with an impact this year at the lower end of a range between $100m and $200m. To offset rising costs the company said it would increase the prices of the machines and engines it sells around the world by as much as 4% from January.
The company’s stock tumbled by about 7%, helping to drag down the Dow Jones index and other industrial companies that have come under pressure from the rising cost of materials and fears over slowing economic growth.
Harley-Davidson warned that tit-for-tat tariffs between the US, EU and
Trump criticised the company earlier this year after it said the imposition of trade tariffs would force it to shift production overseas.
European markets suffered after the EU commission rejected a draft budget proposal submitted by the Italian government, in a move designed to force the populist administration in
Although the move was widely expected, investors are growing increasingly anxious that the standoff between the commission and the third-largest eurozone economy has the potential to drag on for much longer than previously thought.