Global stock markets continued their decline on Tuesday over worsening equations between US and China. On Monday, the US Treasury Department accused China of being a currency manipulator, driving concern that the trade war may get more severe.

Stock markets around the world experienced a massive sell-off as investors drove towards safe haven assets like GOLD and bonds. Even currencies like the Japanese yen and Swiss Franc found favor among investors over the increasing risk-off sentiment prevailing in the markets.

Markets are worried that the trade war may escalate further with another round of tariffs and possibly even tariff hikes by the US against China. China, meanwhile, has announced its decision to halt all agricultural products’ imports from the US in retaliation to last week’s tariff announcement.

Japanese NIKKEI225 closed 1.2% lower while SPX futures were trading 0.65% down in today’s Asian session.