Strong signals that a slowdown in global manufacturing intensified in September sent stock markets tumbling on Wednesday, as leading indices in Europe and the US retreated. In London the FTSE 100 rolled back all the gains made since mid-August as it dropped 237 points to 7,122, falling 3.2% in its biggest one-day fall since 2016. Extending the losses overnight on Asian markets, shares on continental European markets also experienced losses with the Paris CAC falling 3.1% to 5,422. The Dow Jones index in New York compounded its decline on Tuesday by falling close to 500 points on Wednesday, or 1.86%. The trigger for the declines came from the latest batch of surveys to show manufacturers responding to a sharp fall in orders by cutting back production and jobs.
The US is set to impose $7.5bn (£6.1bn) of tariffs on exports from the EU including scotch whisky, French wine and cheese and aircraft in retaliation for subsidies given to the aerospace group Airbus after a World Trade Organization (WTO) ruling.. The tariffs announced on Wednesday could come into effect as early as 18 October and represent a significant widening of the Trump administration’s trade dispute with the EU, adding to growing tensions in the world economy. The US trade representative’s office (USTRO) released a list of hundreds of European sagricultural products that will be subject to a 25% tariff, including British woollen jumpers and pullovers. Cookies, salami, butter and yogurt from some countries will be affected, along with olives from France, Germany and Spain, EU-produced pork sausage and other pork products other than ham, and German coffee.
