Stock exchanges around the world wobbled on trade news, as Trump gives mixed signals of trade deal developments.
In Europe, stock markets rose after some positive comments from China squashed trade concerns. Gains in European indexes, however, didn’t move more strongly because of a profit warning from Imperial Brands.
The e-commerce ministry from China said it was in close communication with the US. The two sides appeared to be wanting progress in trade talks in October.
Meanwhile, Imperial Brands plunged 9.1% after it said full-year profit would be flat. The company said it was a result of a regulatory backlash against vaping in the US.
British American Tobacco Pl also fell 3.2% after the news.
The pan-European STOXX 600 index initially gained 0.2%, but it was still near two-week lows.
Stock Exchanges in Asia Tumble
But the bullishness in euro stocks didn’t last and spill to the Asian market. Asian shares gave up gains after optimism over the trade talks faded.
MSCI’s broadest index of Asia-Pacific shares ex-Japan gained 0.1%. In Japan, Nikkei lost 0.12%.
For futures, FTSE futures dropped 0.3%. Germany’s DAX futures slipped 0.02%, while Euro STOXX 50 futures edged 0.09% lower.
Initially, Asian stocks kicked off in the green. US President Donald Trump said that a deal with China “could happen sooner” than people expect.
However, Trump inconsistent signals made traders cautious. Treasury prices and gold climbed up, indicating investors’ flight to safety due to lingering risks.
US stock futures lost 0.18% after it rose 0.62% in the S&P 500 last Wednesday.
The US and China have had sour relations over China’s trade practices. The year-long conflict has slowed economic growth on a global scale. Some economies are also now suffering risks of a recession.
Last Tuesday, Trump lambasted China in a UN General Assembly speech. He said he would not accept a “bad deal” with China.