Global stocks struggle as hopes fade for trade and Brexit deals

Thursday, 10 October 2019 00:01 - - {{hitsCtrl.values.hits}}

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, 8 October – Reuters

LONDON (Reuters): European stocks steadied on Wednesday, but sentiment remained fragile as negotiations for a Brexit withdrawal deal seemed all but dead and the US-China trade dispute triggered another round of selling.

Markets dropped this on concern the US-China conflict over trade and foreign policy is nowhere near a resolution and is increasingly damaging the global economy.

Asian stocks suffered their biggest fall in a week on Wednesday, following heavy losses on Wall Street and in Europe on Tuesday.

European shares managed to find a floor, however, with the pan-European Euro STOXX inching up 0.1%. Germany’s DAX rose 0.48%, France’s CAC 40 0.24% and Britain’s FTSE 100 0.28%.

Washington and Beijing are engaged in a year-long row that has expanded beyond trade policy, suggesting even more damage to a global economy that is already showing signs of slowing.

Hopes that the two sides could reach a truce this week faded after Donald Trump’s administration introduced visa restrictions on Chinese officials and added more Chinese companies to a US trade blacklist.