Global markets sink; Chinese yuan tumbles

World stock markets plunged Monday and the Chinese yuan fell sharply, days after US President Donald Trump vowed to impose fresh tariffs on Chinese goods in the latest trade war flare-up.

Europe's stocks dived about two percent, mirroring heavy falls in Asia -- where Hong Kong tumbled nearly three percent as it was hurt also by ongoing pro-democracy protests.

"European equity markets have been rocked by the rising trade tensions between the US and China," said IG analyst David Madden.

"There is a feeling that China could inflict a lot more pain on the US in terms of the trade spat, and many traders are worried the economic conflict will rumble on for some time."
Hong Kong meanwhile lost 2.9 percent as pro-democracy protesters targeted the financial hub's transport network in a citywide strike aimed at forcing concessions from its pro-Beijing government. - Key figures around 1100 GMT -
London - FTSE 100: DOWN 2.0 percent at 7,261.11 points Frankfurt - DAX 30: DOWN 1.6 percent at 11,686.14 Paris - CAC 40: DOWN 2.0 percent at 5,250.72 EURO STOXX 50: DOWN 1.7 percent at 3,318.45 Pound/dollar: DOWN at USD 1.2152 from USD 1.2162 at 2100 GMT Euro/pound: UP at 91.89 pence from 91.33 pence Euro/dollar: UP at USD 1.1163 from USD 1.1108