Markets fell on Monday.
The S&P 500 fell 0.4 percent, the STOXX Europe 600 fell 0.3 percent and the Nikkei 225 plunged 2.0 percent.
Investors remained concerned over the situation in Turkey even though the Turkish central bank said on Monday it would provide “all the liquidity the banks need”.
“Even though the country itself has limited ties with the rest of the word, a spreading of the crisis to Europe via its banks’ exposure is a major concern,” said Konstantinos Anthis, head of research at ADS Securities.
“I don’t see Turkey as a significant risk, but investors are very worried about what the next headline risk is going to be,” said Tom Stringfellow, chief investment officer for Frost Investment Advisors.
Bruce Bittles, chief investment strategist at Baird, said: “The largest negative on the horizon is the reluctance of either the U.S. or China to back down from tariff threats, which could eventually lead to a slowing of global economic growth.”
Indeed, Goldman Sachs sees the trade issue as key. It said that an escalation of trade friction could push the US stock market into a bear market but an easing could extend the rally.
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