US stock markets have fallen shortly after opening as global companies are sucked in to the Trump administration’s trade assault on China.
The tech-heavy Nasdaq composite had fallen 0.5 per cent shortly after 4pm UK time, with Chinese internet technology company Baidu among those leading the drop.
The S&P 500 had fallen 0.4 per cent after opening down, while the Dow Jones industrial average had fallen 0.3 per cent.
Chris Beauchamp, chief market analyst at IG, said of US-China trade talks: “Markets are not getting the kind of conciliatory talk from either side that might suggest that progress is being made.”
“Having been so badly caught out with hopes of a deal in late April, perhaps investors will be tougher to convince this time around,” he said.
UK companies today fell in line with US President Donald Trump’s blockade on Huawei, the controversial Chinese technology company with close links to China’s government, which the US say poses a security risk.
Trump has opened up a line of attack on the giant tech firm as part of his trade war with China, which has seen his administration ratchet up tariffs on $200bn worth of Chinese goods to 25 per cent from 10 per cent.
British chipmaker Arm has paused its dealings with Huawei, which could greatly damage the Chinese company’s production of mobile phones, while EE and Vodafone have both blocked Huawei from their 5G launches this summer.
Apple was among the biggest fallers on the Dow Jones today, following an analysts’ note from HSBC yesterday that expressed fear over the company’s exposure to the US-China trade war. It had fallen 1.6 per cent to $183.65.
US technology company Applied Materials, which is closely involved in semiconductor chip making, was among the biggest Nasdaq fallers, dropping 1.7 per cent to $40.83.