The Dow Jones Industrial Average fell over 200 points in Friday morning’s market session as slowing global growth fears continue to linger.
With the U.S.-China trade truce nearing its 90-day deadline, a meeting between U.S. President Donald Trump and Chinese President Xi Jinping appears “highly unlikely,” per a report by CNBC. While President Trump is painting an optimistic picture that a deal will get done, White House economic advisor Larry Kudlow said the two largest economies were still far away on reaching a permanent trade agreement.
“The fear factor over the trade war has crept back into the market,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “That’s going to send the market for a bumpy ride.”
“We’re probably looking at a more defensive situation until we have more clarity on the trade negotiations,” Cardillo added.
This week, the European Commission pared down its 2019 growth outlook for the euro zone, saying global trade tensions and other issues will drag on its largest economies. The Commission said growth will slow to 1.3 percent compared to 1.9 percent for 2018, but is forecasting a subsequent rebound in 2020 to 1.6 percent.
Meanwhile, the Bank of England also cut down its outlook, citing slower growth for 2019–its slowest pace in a decade.