China’s proposed countermeasures prompted U.S. stocks to plunge on Wednesday. The Dow Jones industrial average tanked more than 450 points, with Boeing and Caterpillar leading all stocks in the index lower.
Meanwhile, Wednesday’s announcement also prompted European stocks to extend losses, with the pan-European Stoxx 600 hitting a session low of 0.8 percent shortly after the news.
“I think Beijing is very keen to show that it is not going to be bullied, too,” Neil Dwane, global strategist at Allianz Global Investors, told CNBC on Wednesday.
“(China) is going to position this as them responding to American aggression rather than necessarily being part of the problem,” he added.
The Chinese yuan also suffered its biggest daily fall against the dollar in two weeks after the measures were proposed. The currency slipped 0.4 percent to hit 6.3015 per dollar.
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