Major Markets

Japan takes title of world’s second-largest stock market from China. Chinese equities have seen $2.29tn in valuation wiped off since January.

StockMarketNews.Today – Data from Bloomberg show Chinese equities were worth $6.09tn as of Thursday’s close, while Japan’s market was valued at $6.16tn. The US remained the biggest stock market at $31tn.

Stocks – U.S. Futures Flat Ahead of Corporate Earnings. Euro zone economic sentiment edges lower in July. Oil prices edge higher but trade row caps gains

StockMarketNews.Today – U.S. futures were flat on Monday, as investors look ahead to earnings reports and central bank meetings this week. Euro zone economic sentiment edged lower in July, pulled down by less optimism in industry and the retail sectors. Oil rose on Monday as investors remained cautious over the supply outlook, although the fallout from global trade tensions limited price gains.

China’s stock indices are lower and European stocks are trading cautiously as investors measure comments from the White House signalling that trade talks between Washington and Beijing are stalled.

StockMarketNews.Today – Stocks lose momentum as investors assess trade talks deadlock
Trump adviser blames Xi Jinping for stalled negotiations over tit-for-tat tariffs.
National Economic Council director Larry Kudlow said China could “end” the “tit-for-tat business” by reducing tariffs and allowing American ownership of companies in China.

Asia-Pacific equities recover as US-China trade dispute fears ebb. Sterling dips briefly after Trump makes harsh Brexit comments on visit to Britain

Stocks mostly climbed in Asia as concerns about US plans for tariffs on $200bn of imports from China continued to dissipate. The pound dipped briefly following comments from US President Donald Trump suggesting the UK’s current Brexit plans would forestall a bilateral trade deal, while oil prices edged lower after a partial recovery during the previous session.

Donald Trump’s administration on Friday imposed new tariffs on $34bn of imports from China as the US president threatened to extend levies to all $500bn of Chinese goods, the biggest shot so far in the trade war between the world’s two largest economies.

StockMarketNews.Today – Mr Trump’s comments during a visit to the state of Montana — coming only hours before US customs officials began collecting 25 per cent tariffs on 818 different Chinese products from midnight Washington time on Thursday — highlighted the escalating economic consequences of the trade fight between the US and China.

China’s stock market remains under pressure and European stocks are drifting as investors continue to watch for signs that the trade dispute between China and the US could be influencing China’s policy on its currency.

What you need to know:
Equities lower as trade fears persist.
European tech stocks track losses for the sector overnight on Wall Street.
Renminbi moves further up off lows as attention stays on China’s currency policy.
Chinese stock indices stay under more pressure than their peers.
Sterling bounces up after reassuring services sector economic data.

Leading quote
“Possible trade wars are just another worry on top of other existing global economic problems, but the expectation of recession is usually necessary for a bear market to occur and we don’t believe that is about to happen,” says Jane Sydenham, investment director at Rathbones.