Stock Markets Wary Before Trump-Juncker Trade Talks

Faizan Hashmi Published July 25, 2018 | 11:20 PM

European stocks moved lower Wednesday before top-level talks between the United States and the European Union on resolving a simmering trade dispute that has left investors on edge.

London, (APP - UrduPoint / Pakistan Point News - 25th Jul, 2018 ) :European stocks moved lower Wednesday before top-level talks between the United States and the European Union on resolving a simmering trade dispute that has left investors on edge.

The Dollar rose against the euro, while bitcoin briefly broke through $8,300 before slipping back.

Oil prices rose following a government report showing a decline in US crude inventories.

European Commission President Jean-Claude Juncker was to meet US President Donald Trump later Wednesday in Washington in an attempt to avert an escalation of tariffs.

"An apprehensive day for financial markets has seen significant selling throughout European stocks ahead of a key US-EU meeting," said IG market analyst Joshua Mahony.

"With Trump and Juncker set for trade discussions in Washington later, the pessimistic stance seen within markets is certainly warranted given the acrimonious tone taken in previous meetings," he added.

European stocks ended the day lower. On Wall Street, the Dow was down 0.

3 percent in late morning trading although both the S&P 500 and Nasdaq Composite were in the green.

Mahony noted the decline in Boeing and General Motors highlighted the difficulty manufacturers are currently experiencing amid growing trade war.

Boeing warned of higher costs and GM cut its profit forecast as it said higher commodity costs would squeeze its margins.

Trump has threatened to step up his trade war, with European cars in the crosshairs and all of China's $500 billion of exports to the US.

In what appeared to be the first acknowledgement that Trump's aggressive trade strategy was hurting ordinary Americans, the US government on Tuesday announced $12 billion in aid for farmers who have been the main target of retaliatory measures.

Juncker said he was "not very optimistic" about the outcome of his talks with Trump.

"I know Mr Trump pretty well. I have met him frequently and know how to deal with him and know how he deals with others. We will negotiate as equals," Juncker told German public broadcaster ZDF.