Global equities continue to slide slowly as multiple bearish leverages linger. Despite a potential goodwill gesture from President Trump, who said his government was considering suspending more tariffs on China as trade talks resume on Saturday, investors are still waiting for solid signs of a deal to come. But finding an agreement will not be easy as Washington also said the U.S. is not willing to give any concessions on trade but wants China to return on to the negotiating table.
Geopolitical tension also continues to weigh in on stock markets: President Trump is willing to put maximum pressure on Tehran and is currently working on what else can the U.S. do in terms of sanctions. He also added the U.S. would reply with “great and overwhelming force” to any further attacks from Iran, which doesn’t help to reassure oil and stocks traders.
Finally, tension may be on the rise in another part of the world too after North Korea said the extension of U.S. sanctions against the country is a “direct challenge to the Singapore summit”.
Investors are now trying to gauge the possible impact of these risks over the markets, and many are likely to assume a ‘wait and see’ approach. All benchmarks are trading lower today, with the worst performances registered by the Real Estate sector while the Stoxx-50 index rebounded over the strong 3,415.0pts / 3,420.0pts zone thanks to the Energy sector as well as Financials.