The main driver of the recent declines appears to be America's trade war, with investors watching the administration's latest plans on trade and tariffs. The selloff coincided with retaliatory tariffs against the U.S. following levies last week on Canada, Mexico and China, some of which were delayed.

United States stock markets plummeted on Monday amid fears that President Donald Trump’s tariff policies might drive the world’s largest economy into recession. After years of impressive growth, America’s economic exceptionalism has been called into question.