Chinese stocks plunge and lead global markets lower as investors weigh escalating US-China tensions running beyond 'mere tariffs'

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• Global stocks tanked on Friday as investors weighed tensions between the US and China worsening at an exponential pace.
• On Friday, China ordered the closing down of a US consulate in its city Chengdu in retaliation to a request to shut down its own consulate in Houston.
• "This is a legitimate & necessary response to the unilateral provocative move by the US to demand the closure of China's Consulate General in Houston," China's foreign ministry spokesperson said in a tweet.
• Investors are contemplating a serious escalation in US-China tensions that run far beyond the risk of "mere tariffs" and a looming lurch lower in the US economy, Rabobank analysts said.
• Chinese mainland stocks dived almost 4%, while equities in Europe were 2% lower during morning trade.
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Global markets slid on Friday amid mounting geopolitical tensions between the US and China, after Beijing ordered the closure of a US consulate in the city of Chengdu.

China's benchmark Shanghai index fell 3.8% and Hong Kong's Hang Seng dropped 2.3%. Futures tied to the S&P 500 fell 0.7% in European trade Friday.

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