UK stocks and US futures fall as Trump threatens China with scary tariffs and income

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British stocks and US futures fell early on a calm Friday as investors digested earnings warnings, grim economic data and the potential for renewed trade tensions between the United States and China.
Markets in Germany, Italy, Spain and a number of other continental countries are closed for Labor Day. However, the FTSE 100
UKX,
-1.77%

extended Thursday’s heavy losses, slipping 3.5% at the start of the session.

Top three US indices to open lower after Amazon
AMZN,
+ 4.26%

and Apple
AAPL,
+ 2.11%

The two have warned of the uncertainty of future coronaviruses and reports suggest that President Donald Trump is considering tariffs to take revenge on China for its handling of the pandemic. Dow Futures
YM00,
-1.82%

were down 1.8%. S&P 500 Futures
ES00,
-2.06%

slipped by 2% and the Nasdaq
NQ00,
-2.36%

futures contracts fell 2.3%.
What moves markets?

With the majority of European markets closed, attention has shifted to the United Kingdom, where the top-notch FTSE 100 index fell 3.5% and the more focused FTSE 250 domestic market index.
MCX,
-1.71%

down 2.2% at the start of the session. Royal Dutch Shell’s
RDSB,
-6.93%

The historic drop in dividends – its first since World War II – resulted in heavy losses on Thursday and the mood continued on Friday.
Royal bank of scotland
RBS,
+ 5.24%

somewhat stopped the rot with regard to British banks. Profits were cut in half in the first quarter as the state-owned bank set aside £ 802 million for bad debts in the context of the coronavirus crisis. However, profits exceeded expectations and the action rose 5.4%, but that was not enough to improve sentiment across the market. Glencore miners
GLEN,
-5.68%

and BHP
BHP,
-3.81%

were among the most significant declines after the previous reduced spending and production forecast on Thursday. Manufacturing activity in the UK fell to a record low in April, the purchasing managers’ index that followed closely confirmed the devastating impact of COVID-19.
AJ Bell chief investment officer Russ Mold said: “The FTSE extended its losses on Friday as investors turned their back on mining, travel and financial stocks. Tensions between the U.S. and China have weighed on stocks, with Donald Trump claiming to have evidence that the coronavirus started in a Chinese laboratory, fueling fears of a new trade. “
Sentiment in the United States was further embittered after optimism over medical developments, two of the biggest hitters reporting profits.
Amazon shares fell 4.9% in pre-market trading as e-commerce giant surpassed $ 75 billion in first-quarter sales, but has reported declining profits and may lose money money because it spends to meet demand in the context of the coronavirus crisis. Apple
AAPL,
+ 2.11%

stocks also fell 2.8% as profits fell slightly and the company declined to give forecasts for the second quarter.

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