The European markets fell sharply today after China's announcement that the US intent to impose fresh tariffs violates a consensus between President Trump and Xi Jinping.

The FTSE 250, seen as a good gauge of the UK economy, fell 0.9% after closing down 1.5% the previous day.

Weak data from Germany and grim signs in bond markets had also spooked investors. As a result, the three main US stock markets closed 3% lower overnight and European stocks fell across the board, while the Nikkei closed 1.2% lower.

Earlier this month, US President Donald Trump delayed imposing tariffs on some imports from China until 15th December in part to avoid hitting US shoppers this Christmas. The products included mobile phones, laptops, video game consoles, some toys, computer monitors, and certain footwear and clothing.