Global Stock Index Slammed by Trade Tensions

The MSCI's All Country World Index dropped over 1% after China imposed new tariffs on U.S. goods in response to President Trump's policy. The Index entered 'correction' territory, having lost 10% since its February high. This decline might amplify when Wall Street resumes trading.

The global stock markets took a hit on Friday as the broad MSCI's All Country World Index, which covers 2,645 companies, plunged into 'correction' territory following China's announcement of retaliatory tariffs.

The latest escalation in China-U.S. trade tension saw Beijing imposing an additional 34% tariff on American products and curtailing exports of essential rare earth elements.

This response to U.S. President Donald Trump's tariff strategy caused a more than 1% drop, with Wall Street expected to react further negatively when trading resumes. The index has now fallen 10% since its record peak in February.

(With inputs from agencies.)