US stocks fall 2% as trade tensions escalate

US stock indices fell after President Donald Trump confirmed the imposition of 25% tariffs on Canada and Mexico, which exacerbated economic concerns, especially after data showed a slowdown in manufacturing activity.

At the end of Monday's trading, Dow Jones decreased by 1.5% or 649 points at 43,191 points, the lowest level of the industrial index since January 16.

The S&P 500 fell by 1.75% or the equivalent of 104 points at 5,849 points, while the Nasdaq lost the compound 2.65% or 497 points to end the session at 18,350 points.

Looking at the European markets, the STOXX Europe 600 rose with more than 1% at 563.1 points, the highest level of the European index ever.

The French CAC increased by 1.1% at 8,199 points, the British FTSE Russell increased 0.7% to close at 8,871 points, its highest level ever, while the German DAX jumped 2.65% to 23,147 points, which is a standard closure.

In Japan, the Nikkei 225 index increased by 1.7% to 37,785 points at closing, while its broader TOPIX increased by 1.75% to 2,729 points.

In the oil market, Brent crude futures for May's delivery - the most active contract – fell by 1.65% or $1.19 to $71.62 a barrel.

The prices of the US NYMEX futures for April delivery decreased by 2% or $1.39 to $68.37 a barrel.

On gold, the prices of futures for the yellow metal for April delivery increased by 1.85% or $52.6 at $2,901.1 an ounce.

The Purchasing Managers Index issued by the Institute for Supply Management (ISM) recorded 50.3 points in February, a decrease of 0.6% from January, and less than the 50.6 points expectations. Inflation fears renewed after the price index rose 7.5 points to 62.4 points.