China Refuses to Back Down From Trade War with U.S., Global Markets Fall

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China shows no signs of conceding in the trade war with U.S., and global markets fell as investors contemplated a drawn-

Following China’s announcement on Sunday that it will "not back down" in the current US-China trade war, global stock markets fell on Monday, reports CNN.

ING economist Iris Pang wrote a research note saying, "The series of actions over the weekend means that China's 'long march' has begun.”

"It means that the trade war has not only become a technology war but also a broad-based business war. There will be more retaliation actions from China, especially for the technology sector.”

In Asia, Tokyo's Nikkei closed down 0.9% on Monday. The Shanghai Composite declined 0.3%, and Hong Kong's Hang Seng dipped 0.1%.

For early trading in Europe, benchmark indexes in London and Paris were down 1%, and Frankfurt's DAX fell 0.6%.

Wang Shouwen, a vice minister of commerce and deputy trade negotiator, said the United States cannot force China to sign a trade deal, and that the country "will not back down."

Beijing also said on Sunday that it is investigating FedEx after embattled Chinese tech firm Huawei said the delivery company diverted two packages intended for the company's offices in China to the United States instead.

The investigation on FedEx (FDX) follows China’s announcement on Friday that is building an "unreliable entity list," which effectively blacklists foreign companies as trade tensions with the United States continue to build.

Meanwhile, investors are still trying to determine how new tariffs on Mexico will affect American businesses and the economy.

Hannah Anderson, market strategist at JP Morgan, said, "Recent events have shown that markets cannot really ever dismiss (trade) uncertainties and that investors may need to accept that the United States is comfortable fighting a trade war on many fronts.”

Dow futures were down 160 points, or 0.6%, signaling a rough start to June for Wall Street. S&P 500 futures dropped 0.6% and Nasdaq futures fell about 0.8%.

Read the full report here.