US stock futures dived on Monday after Washington and Beijing placed new taxes on each other’s goods, while Argentina imposed capital controls and cast a new spotlight on emerging-market risks.

The US imposed 15 per cent tariffs on a variety of Chinese goods and China began to impose new duties on a $75 billion target list. US President Donald Trump said both sides would still meet for talks later this month. Wall Street was shut for the Labor Day holiday on Monday, but futures contracts tied to the major indexes were trading and spiked lower.

The E-mini futures for US S&P 500 ESc1 fell as much as 1.2 per cent in early trade and last stood down 0.9 per cent. MSCI’s All-Country World Index, which tracks shares across 47 countries, was down 0.1 per cent on the day.

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