Global stocks retreated amid fading optimism around U.S.-China trade negotiations as the two countries signaled an agreement remained out of reach. On Friday, Chinese negotiators abruptly canceled a trip to farms in Montana and elsewhere. President
also rejected suggestions that the U.S. would accept a partial trade agreement with China, saying his administration is “looking for a complete deal.”
“I think this is the case of, well, we had the promise of more talks but where do we go from here?,” said
chief market analyst at online trading firm
The Stoxx Europe 600 fell 0.7% in opening trade, with losses across most regional indexes, after a broadly lower session in Asia. Shares in airplane and travel companies rose following the collapse of British travel group
Thomas Cook Group
PLC after failing to conclude a rescue deal with investors and creditors, canceling all bookings and forcing U.K. authorities to help get thousands of vacationers home. Shares in travel company
rose 9.5% and shares in
PLC gained 5.8%. Chinese shares fell on Monday, amid concerns about the faltering trade talks. The benchmark Shanghai Composite Index closed nearly 1% lower, while its smaller Shenzhen counterpart fell slightly more than 1%. “The farm visit news was certainly a factor but having said that, investors’ expectations for a quick resolution had been pretty low in the first place,” said Zhang Gang, senior analyst at
Central China Securities
saying the declines were relatively limited by Chinese standards. Twists and turns on the trade front aside, the Chinese central bank’s decision to hold a key medium-term interest rate steady last week has continued to weigh on sentiment,
said. “There are few signs that the authorities will significantly loosen monetary policy in the near term,” he added. Hong Kong’s Hang Seng fell 0.7% after another weekend of protests. Japan’s Nikkei 225 was closed for a holiday, and Korea’s Kospi was flat. Indian shares were a bright spot, hitting a two-month high as the government’s measures to prop up sluggish economic growth boost investor sentiment. Brent crude oil rose 0.9% to $63.76 a barrel after The Wall Street Journal reported Sunday that the Saudi Arabian Oil Co. was offering equipment makers and service providers a premium for parts and repair work as it seeks to restore operations hampered by an attack on oil facilities earlier this month.
A trader works on the floor of the New York Stock Exchange, Sept. 19, 2019.
It may take many months—rather than the maximum 10 weeks company executives have promised—to restore operations to full working order, Saudi officials and oil contractors said. The yield on the 10-Year Treasury edged down to 1.749% from 1.754% on Friday afternoon. Bond prices and yields move in opposite directions. The euro fell 0.5% against the U.S. dollar after French and German manufacturing and services data came in weaker than expected. The yield on the German 10-year bund also dropped to minus 0.564% as investors reached for safe government bonds. —Shen Hong contributed to this article. Write to Caitlin Ostroff at firstname.lastname@example.org
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