Global stocks fell broadly after President Donald Trump cast doubt over the potential for a trade deal with China this year and threatened to impose tariffs on French goods.
The selling knocked the Dow Jones Industrial Average more than 350 points lower and had the S&P 500 on track for its third straight loss as the market continued to give up gains after a strong November rally.
The ASX is set for another heavy day of losses, with futures at 5.30am AEDT pointing to a fall of 64 pointsw, or 1 per cent, at the open. On Monday, the ASX shed $US47 billion as it fell by 2,2 per cent, recording its worst day in four months.
Trump said he has “no deadline” for a deal and didn’t mind waiting until after the 2020 election to make one. Investors had been hoping for a deal this year, or at least enough progress to stave off new US tariffs on Chinese goods, including smartphones and laptops, scheduled to start December 15.