Stock markets extend losses as Trump's tariffs hit global outlook

Major global stock markets extended losses on Friday on heightened concerns over the potential fallout from US President Donald Trump's tariff agenda.

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US stocks slumped on opening with the NASDAQ falling 1.0 per cent and both the S&P and Dow dropping by 0.8 percent.

European indices likewise traded lower in mid afternoon deals following some heavy falls in Asia and weakness on Thursday on Wall Street.

London lost 0.7 per cent, Paris fell I.O per cent and Frankfurt suffered a 1.2 per cent drop.

"Overall, stocks are sliding because of a lack of confidence," said Kathleen Brooks, research director at XTB trading group.

"There is a confidence deficit around the world, which has been triggered by the un- orthodox economic policies of Donald Trump."

Stock markets across the globe retreated on Thursday after the Federal Reserve painted a gloomier picture for the US economy in the near future, even if Federal Reserve boss Jerome Powell downplayed the impact of tariffs.

The Bank of England and Bank of Japan this week have warned about economic uncertainty fuelled by Trump.

"Equity investors are back focusing on the uncertainty and negative impact that is likely to come from a trade war," National Australia Bank's Rodrigo Catril noted on Friday.

"Sentiment remains fragile with investors nervous and not sure whether to put on risk or take it off."

Shares in Hong Kong sank for a second day running after a blistering start to the year.