Britain’s top stock index the FTSE 100 was down by almost one per cent, following share falls in Asia overnight.
Wall Street also looks to open lower when markets in the US open and the dollar was also impacted by nervous sellers.
From The Express
The new president sparked a worldwide backlash after signing an executive order to suspend travel from seven countries on the basis of security concerns.
Experts said a globally damaging trade war between the US and China was now looking more likely.
Ahead of taking office, Mr Trump repeatedly spoke out against Chinese imports and said he would move to retaliate against the country.
James Woods, global investment analyst at Rivkin Securities, said: “Trump always stated these were policies he would implement.
“This renews concerns about a trade war with China that would significantly affect both the Asian and the global economy.”
Several business leaders have spoken out against the US leader’s travel policy, which has helped create fear, according to Naeem Aslam, chief market analyst at Think Markets.
He said: “After a week in office, Donald Trump is keeping investors on their toes already with his executive order over the weekend impacting the dollar.
“Although several leaders of different countries have criticised his executive orders on immigration, Trump’s administration has decided not to pay any attention.
“The net result, however, is more uncertainty and jitters among investors.
“The major US tech giants have also strongly condemned the president’s executive order which is not helping business confidence.”