Stock Markets Downbeat After Trump Brexit, China Comments

Stock markets largely headed south once more Tuesday with traders on edge after US President Donald Trump warned he would ramp up his trade war with China should he fail to reach a deal with Chinese leader Xi Jinping at upcoming talks.

London, (UrduPoint / Pakistan Point News - 27th Nov, 2018 ) :Stock markets largely headed south once more Tuesday with traders on edge after US President Donald Trump warned he would ramp up his trade war with China should he fail to reach a deal with Chinese leader Xi Jinping at upcoming talks.

The pound meanwhile suffered after Trump warned Prime Minister Theresa May's EU divorce agreement could hamper the chances of a trade deal between Washington and London.

Oil prices steadied after recent extreme volatility, while bitcoin stabilised around $3,650.

Monday witnessed a global markets rally, fuelled by rising oil prices, Italy's softer tone in its budget standoff with Brussels and May's Brexit agreement with the European Union.

"A strong, sharp move higher in global equities faded almost as quickly as it occurred... in what is a clear sign of the growing sensitivity to this (trade) matter heading into the G20 meetings later this week in Buenos Aires," noted David Cheetham, chief market analyst at traders XTB.

"Comments from US President Trump... that downplayed the chances of a US-UK trade deal afterBrexit have no doubt not helped the pound's plight," Cheetham said, adding that further pressure was comingfrom May's struggle to have the Brexit deal approved by the UK parliament.