Global equities markets fall for a second day as the US slapped tariffs on $7.5 Billion worth of European goods, intensifying the global trade war.

It’s business as usual in a market in Hong Kong, where a shopper checks out the merchandise of a fruit stall.

The benchmark Philippine Stock Exchange index extended losses on Thursday, tracking overseas equities markets’ leads as economic powerhouse United States imposes tariffs on European goods, sparking concerns that the move could further slow down global economic growth.

The main index dropped 0.86 percent, or 65.13 points, to 7,545.55. The broader all shares index was also down 0.68 percent to 4,604.01, while four out of six sub-sectoral indices registered losses.

“Global equities markets fall for a second day as the US slapped tariffs on $7.5 Billion worth of European goods, intensifying the global trade war. This came after the World Trade Organization ruled in favor of the US that Airbus had been receiving illegal government aid for years. The tariffs would go into effect on 18 October,” research head for AAA Equities Christopher Mangun said in a daily market note.

Philstocks Financials Inc. research associate Japhet Louis Tantiangco added dismal manufacturing data from the US for September, on top of uncertainties due to the possible impeachment of US president Donald Trump has been causing a dent on investors’ confidence.

The Dow Jones Industrial Average declined 1.9 percent to 26,078.42 points overnight, breaking below 50-day and 100-day moving average. The S&P 500 also dropped 1.8 percent to 2,887.61 while the Nasdaq Composite lost 1.6 percent to 7,785.25. In London, the FTSE 100 pushed back 3.2 percent to 7,122 on Wednesday following the news.

In Asia, Japan’s Nikkei 225 also dropped 2.01 percent to 21,341.74 while Taiwan’s TSEC 50 index declined 0.66 percent to 10,875.91. Hong Kong’s Hang Sei index rose 0.29 percent to 26,117.59.

Here, the property index was the session’s biggest loser after declining 2.19 percent on the back of an ongoing crackdown on Philippine Offshore Gaming Operators. The holding firms also took a sharp hit with a 1.27-percent drop. The financials index receded 0.55 percent while the mining and oil index was down 0.09 percent.

On the other hand, the industrial index and services index were up 0.82 percent and 0.65 percent, respectively.

Turnover value picked up at P6.37 billion from Wednesday’s P5.18 billion, although foreign investors are still fleeing the market with a net-selling footprint of P1.26 billion, higher from Tuesday’s P498 million. The session saw 141 decliners winning over 42 advancers, while 58 names were unchanged.

While the main index is down to where it was at the onset of the year, Mangun said the bourse can still end in green on Friday following five consecutive days of losses.

“The last time it came down to this level back in May, we then saw a rally of at least 500 points. If this level does not hold, then we may end the year closer to the 7,000 level. Although trading volumes were higher today, we also saw a big jump in foreign outflows compared to the daily average. We are only a few billion away from seeing negative fund flows for the year,” he said.