NEW YORK (Reuters) – Oil prices fell and global equity markets slid on Friday, halting a week-long rally on hopes an end to the U.S.-China trade war was near, as investors parsed statements from Beijing and Washington on where they stand on rolling back tariffs.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 6, 2019. REUTERS/Brendan McDermid
Doubts arose about when a deal would be signed as fierce opposition to rolling back existing tariffs surfaced from the White House on Thursday, a position U.S. President Donald Trump confirmed when talking to reporters on Friday.
Trump said he has not agreed to roll back tariffs on China but that Beijing would like him to do so.
The dollar rose to a three-week high, lifted by safe-haven bids, as risk appetite for higher-yielding currencies took a step back amid uncertainty about the tariff rollback, a major component of a preliminary U.S.-China trade deal.
Skepticism abounds about the strength of the economy and corporate results, which is driving fear of more weakness ahead, said Christopher Smart, chief global strategist at Barings.
“I’m less convinced that we’re headed for a durable trade peace with China,” he said.
“It’s very difficult of course to forecast what this administration will or will not agree to, but it’s going to be hard to keep the peace going into an election year,” Smart said.
MSCI’s gauge of stocks across the globe shed 0.19% and the pan-European STOXX 600 index lost 0.27%.
Stocks on Wall Street were mixed as doubts about