Global stock markets have taken a dive, triggered by heavy losses on Wall Street and comments by Donald Trump describing US interest rate hikes as “crazy”. The Dow Jones and S&P 500 also fell by more than 3 per cent, with losses accelerating towards the end of trading yesterday.
Oil prices slumped to two-week lows as global stock markets fell, with investor sentiment made more bearish by an industry report showing US crude inventories rising more than expected. Brent crude prices have hit a low of $81.21.
International Monetary Fund Managing Director Christine Lagarde warned countries against engaging in trade and currency wars that hurt global growth and imperil “innocent bystanders.” Lagarde urged countries to “de-escalate” trade conflicts and fix global trading rules instead of abandoning them.
US Treasury Secretary Steven Mnuchin warned China not to weaken its currency as the US and China try to resolve their trade differences. Mnuchin said his treasury department is closely watching the currency market and wants to talk about the issue with China as a part of trade discussions.