Markets tumble as China announces retaliatory tariffs

Markets fell on Monday.

The S&P 500 plunged 2.4 percent, the STOXX Europe 600 tumbled 1.2 percent and the Shanghai Composite sank 1.2 percent.

Markets fell as China announced that it would impose retaliatory tariffs on US$60 billion in imports from the US with new or expanded duties that could reach 25 percent.

“On the heels of 2019’s historic rally, valuations are no longer depressed, making it harder for equities to shrug off looming macro risks,” wrote Alec Young, managing director of global markets research at FTSE Russell. “With the ultimate trade outcome inherently uncertain and difficult to model or predict, investors are selling first and asking questions later.”