The main global stock market index fell into 'correction' territory on Friday as China hit back at the sweeping trade tariffs announced by U.S. President Donald Trump this week.

MSCI's All Country World Index, which includes 2,645 companies, was down more than 1% on day the after Beijing had said it would put additional tariffs of 34% on all U.S. goods and slap curbs on exports of some key rare earths.

The drop was expected to increase when Wall Street trading resumes, futures indicated. But the falls already meant it had lost 10% since hitting a record high in February, a threshold traditionally classed as a 'correction' by market analysts.

(Reporting by Marc Jones, editing by Alun John)