Stocks are dropping as traders worry about the US-China trade war, Iran tensions, and weak earnings

Reuters

• World stocks dropped on Thursday as signs of renewed escalation in the US-China trade war, mixed corporate earnings, and rising US-Iran tensions weighed on market sentiment.
• "We have a long way to go as far as tariffs where China is concerned," President Donald Trump said on Wednesday, adding his administration was willing to extend tariffs to another $325 billion worth of Chinese goods.
• Traders were also concerned about a rare decline in Netflix's US subscriber base, and US troop deployments in the Middle East.
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Global stocks dropped on Thursday as signs of renewed escalation in the US-China trade war, mixed corporate earnings, and rising US-Iran tensions weighed on market sentiment.

"We have a long way to go as far as tariffs where China is concerned," President Donald Trump said on Wednesday, adding his administration was willing to extend tariffs to another $325 billion worth of Chinese goods.

"There has been little to no progress on this front in recent days, with both sides complaining that the other side isn't making good on the promises that were made," said Stephen Koopman, senior market economist at Rabobank.

"The conflict will drag on and the current package of tariffs will remain in place," he added. "But the escalation will be gradual: the strategy of the Trump administration is to slowly squeeze the life out of the Chinese economy, not to push it into recession."

Meanwhile, Netflix shares plunged on Wednesday after it reported its first decline in US subscribers since shifting from mailing DVDs to streaming videos, fueling fears of other disappointing results. The US is also preparing to send 500 troops to Saudi Arabia, according to CNN, as it continues to dispute with Iran over nuclear weapons, missile-system purchases, and recent attacks on drones and oil tankers.

However, the promise of cuts to interest rates at the end of the month could lift the market gloom.

"The expectation of cheaper liquidity from the Federal Reserve (Fed) may not keep investors worried for so long," said Ipek Ozkardeskaya, senior market analyst at London Capital Group.

Here's the market roundup as of 9.00 a.m. (4:00 a.m. ET):

• Asian indexes have fallen with the Shanghai Composite down 1%, Japan's Nikkei down 2%, and Hong Kong's Hang Seng down 0.6%.
• European equities slid in morning trading. Germany's DAX fell 0.7%, the Euro Stoxx 50 slid 0.6%, and Britain's FTSE 100 dropped by 0.4%.
• US stocks were poised for a lower open. Futures underlying the Dow Jones Industrial Average and S&P 500 were down between 0.2% and 0.3%, while Nasdaq futures were down 0.4%.
• Oil prices were mixed with West Texas Intermediate crude down 0.2% at $56.70, and Brent crude down 0.1% at $63.70.
• Bitcoin recovered some of its recent losses. The cryptocurrency was up 2.4% at about $9,780.