Dollar, stocks slide on Trump tweets, dour PMI data

NEW YORK (Reuters) – The dollar and global stock markets retreated on Monday after U.S. President Donald Trump said he would restore tariffs on some imports from Brazil and Argentina, overshadowing data that showed the Chinese and euro zone economies were stabilizing.

Stocks slid further on data from the Institute for Supply Management (ISM) showing the U.S. manufacturing sector contracted for a fourth straight month in November as new orders slid to around their lowest level since 2012.

A World Trade Organization ruling that the European Union continues to provide unfair subsidies to European planemaker Airbus (AIR.PA), which supports the U.S. case for retaliatory tariffs, also weighed on European equities.

Germany’s export-sensitive DAX .GDAXI stock index tumbled 1.9%, its worst single-day decline since early October, when the WTO approved U.S. moves to slap import tariffs on $7.5 billion worth of European goods.

MSCI’s gauge of stocks across the globe .MIWD00000PUS shed 0.52%, while the pan-European STOXX 600 index lost 1.56%.

Trump’s tweets triggered selling that accelerated on last month’s below-expectations U.S. manufacturing activity, said Fawad Razaqzada, market analyst at in London.

“It’s a number of reasons coming in all at the same time,” Razaqzada said. “But with the stock markets at record high levels, this is always going to happen. Markets go up in stairs and then on the way down, it’s an elevator.”

The major U.S. indexes last week hit record highs and MSCI’s index of equity markets in 49 countries was one point below an all-time high established in January 2018.

The Dow Jones Industrial Average .DJI

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