Global markets concerned about trade war, says Fat Prophets

The trade war will continue and this is exactly what the markets are concerned about,  said David Lennox, an analyst at Fat Prophets.

The Trump administration on Wednesday said it would slap 10 percent tariffs on an extra $200 billion worth of Chinese imports.

"We could see a significant step in terms of further tariffs from China in retaliation and then we may see retaliation back from the US,” he added.

On falling zinc prices, Lennox said that it was one of the fastest running commodities over the last 12 months given that it was in supply deficit and inventories had considerably shrug over the course of the time.

Zinc prices fell to their lowest in more than a year on Tuesday as expectations of rising supplies and a narrowing deficit sparked a sell-off.

"It would be no more or less impacted across the commodities space," he said.