Global markets were rattled by trade tensions on Tuesday after Donald Trump said that he saw “no deadline” to agree a truce with China and threatened punitive tariffs on economies in Europe and South America.
The US president’s comments cast significant doubt on the likelihood of a phase-one deal being agreed with China in the coming weeks after he said at a NATO summit in London that he would be willing to wait another year before striking an accord.
The announcement shocked European stock markets, sending the FTSE 100 to its biggest one-day slump in two months. The index plunged 1.8pc or 127.2 points to fall below 7,200.
These were some of the day’s biggest stories: