Trump tariff worries trip up stocks rally, dollar climbs [Video]

A stocks rally following Donald Trump’s re-election lost steam Tuesday on worries of a possible trade war between China and the United States, analysts said.

Meanwhile the euro hit a one-year low and the pound fell one percent against the dollar, which has been invigorated by expectations Trump’s policies will keep interest rates higher.

Wall Street’s main indices were lower in late morning trading after having racked up huge gains in the day’s following Trump’s victory and a Republican congressional sweep.

“The stock market rally is on pause on Tuesday,” said Kathleen Brooks, research director at XTB.

Leading European and Asian markets closed the day with hefty losses, with both Frankfurt and Paris falling over two percent and Hong Kong finishing nearly three percent lower.

Chinese stocks were already under pressure from disappointment about Beijing’s lack of extra measures to boost China’s stuttering economy.

The sell-off came despite another record …