The world's two biggest economies are on the brink of an economically destructive trade war. Here's what experts think could happen next.

A look at the day ahead in European and global markets from Ankur Banejee An action-packed week in the markets is heading for a more subdued finish as traders await U.S. payrolls data, although the lingering threat of a trade war kept investors hesitant about placing major bets.

After many months of threats, the US has imposed 10% tariffs on all Chinese goods coming into the country. Helen Qiao, chief economist for Greater China at Bank of America, joins John Lee and Katia Dmitrieva to gauge the impact in the world's second largest economy and what could lay ahead.

Beijing has made its decision. After days of warning of counter measures and urging Washington to enter negotiations and "meet China halfway", it has decided to hit back – or at least threaten to retaliate with its own tariffs.

China's stocks and currency came under pressure as markets returning from a week-long break were greeted by a new trade dispute with the United States and ructions in the global artificial intelligence sector.

China’s tariff increases and other countermeasures were mostly symbolic and apparently designed to project strength while leaving the door open to talks.

Asian equities were mostly higher overnight as Mainland China and Hong Kong outperformed and Indonesia and Thailand underperformed.