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The Asian market has joined the world with new concerns about trade and the global economy weakening investors.
Japan's Nikkei 225 Index fell 2{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} and Australia's ASX 200 fell 2.1{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}.
The UK's FTSE 100 fell 3.2{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}, while the US and European markets fell on Wednesday.
This decline resulted in US $ 7.5 billion (6.1 billion pounds) in US tariffs on EU commodities due to weak US economic data and the World Trade Organization's ruling.
Analysts said these factors caused fear of the power of the global economy.
Margaret Yan, CMC market analyst, said, “It appears that there will be a crack in the trust of some regions and investors in the US economy.
She added that the combination of various factors, including the US soft job and manufacturing report, "concerned about the global economic slowdown and rising trade risks," added to the concerns of existing investors.
These risks include a new front on world trade hostility between the United States and Europe.
The WTO has received green light in the United States to hit new tariffs on various EU products, including aircraft, cheese and olives.
This action has become the latest chapter in the long-term battle between the United States and the EU for illegal subsidies from plane maker Airbus and rival Boeing.
Tariffs are separate from US President Donald Trump's global trade disputes.
- Quick Guide to the US-China Trade War
Slowing fear
Asian stocks plunged following weaker US and European indices on Wednesday.
Bluechip UK FTSE 100 has had its worst day since January 2016. In Europe, Germany's main index, Dax, fell 2.8{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}, while France's Cac 40 fell more than 3{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}.
In the United States, Dow Jones Industrial Average fell 1.9 percent, down more than 1 percent for the second consecutive day.
The S & P 500 fell 1.8{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}, while the tech-savvy Nasdaq gave up 1.6{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}.
The loss occurred after the Factory Activity Index of the Institute for Supply Management (ISM), one of the most closely observed US manufacturing figures, fell to its lowest level since June 2009.
- Is the market a sign that the recession is imminent?
Wednesday, September, new figures showing a slowdown in employment growth in the private sector, fueled concerns about the US economy.
"The feelings are so weak that the WTO's 1-2 punches [US jobs data] Jeffrey Halley, OANDA's chief market analyst, said: