Market sentiment fragile as U.S.-China talks and Brexit deals fade hopes
European stocks steadied on Wednesday but market sentiment remained fragile as negotiations for a Brexit withdrawal deal seemed all but dead. The sentiment carried on in addition of the U.S.-China trade dispute.
Markets mostly blame their sentiment on concerns that the U.S.-China conflict over trade and foreign policy is nowhere near a resolution and is increasingly damaging the global economy.
Washington and Beijing have been engaged in year-long dispute which has now expanded beyond trade policy. Hopes that the two sides could reach a truce this week faded after U.S. President Donald Trump introduced visa restrictions on Chinese officials and blacklisted several Chinese companies.
A U.S. official said that high-level talks with China would take place on Thursday and Friday. However, Trump stated that tariffs on Chinese imports will rise on October 15 if no progress was made in the negotiations.