Major stock markets extended losses on Friday on heightened concerns over the potential fallout from US president Donald Trump鈥檚 tariff agenda.
European indices traded lower in late morning deals following some heavy falls in Asia and weakness on Thursday on Wall Street.
Stock markets across the globe retreated on Thursday after the Federal Reserve painted a gloomier picture for the US economy in the near future, even if Federal Reserve boss Jerome Powell downplayed the impact of tariffs.
The Bank of England and Bank of Japan this week have warned about economic uncertainty fuelled by Trump.
鈥楨quity investors are back focusing on the uncertainty and negative impact that is likely to come from a trade war,鈥� National Australia Bank鈥檚 Rodrigo Catril noted on Friday.
鈥楽entiment remains fragile with investors nervous and not sure whether to put on risk or take it off.鈥�
Shares in Hong Kong sank for a second day running after a blistering start to the year.
Chinese electric vehicle maker BYD dived more than eight per cent following a report that the European Commission was conducting a foreign subsidy investigation into its plant in Hungary.
British Airways-owner IAG retreated 1.2 per cent after the airline warned that the temporary closure of Heathrow airport, its main hub, would significantly affect operations.
Europe鈥檚 busiest airport shut down early on Friday after a fire at a nearby substation supplying power to the sprawling facility west of London.
鈥楾his will clearly have a significant impact on our operation and our customers and we鈥檙e working as quickly as possible to update them on their travel options for the next 24 hours and beyond,鈥� British Airways said in a statement.
Nike slid four per cent in after-hours US trading after the athletic footwear and apparel giant reported falling quarterly revenue.
Unease about the outlook continues to push gold prices higher as investors seek a safe haven from the volatility.
The precious metal was sitting just below the record $3,057.49 per ounce (28.35 gram) touched on Thursday.
Oil prices dropped despite rising tensions in the crude-rich Middle East.