Global Stocks Fall as US-China Trade Tensions Escalate

Global stock markets faced renewed pressure due to escalating trade tensions between the U.S. and China, highlighted by President Donald Trump's announcement to double tariffs on steel and aluminum imports. This development has heightened market uncertainty and stalled a potential rebound in U.S. stocks, as investors fear prolonged instability without definitive trade agreements. European stocks mostly declined amid these tensions, with additional focus on the European Central Bank's expected interest rate cut and geopolitical developments such as Ukraine's strikes ahead of peace talks. Despite rising volatility, some strategists view the tariff escalations primarily as negotiation tactics rather than persistent economic threats. The U.S. dollar continued to weaken, extending losses amid concerns about slowing U.S. growth and fading exceptionalism, while Treasury yields rose modestly. Meanwhile, UK markets showed resilience with defense stocks gaining ahead of a defense review and house prices rising, supported by low unemployment and healthy earnings growth.