Global stocks retreated for a third straight day on Thursday as investors reduced their optimism over U. S.-Sino trade talks, while an early end to a U. S.-North Korean summit in Vietnam and weak economic data out of China also hit sentiment.
LONDON (Reuters) — Global stocks retreated for a third straight day on Thursday as investors reduced their optimism over U. S.-Sino trade talks, while an early end to a U. S.-North Korean summit in Vietnam and weak economic data out of China also hit sentiment.
The Japanese yen and the Swiss franc — both safe-haven currencies — gained after the United States and North Korea failed to reach an agreement on denuclearization of the Korean peninsula after two days of meetings.
U. S. President Donald Trump and North Korean leader Kim Jong Un had constructive discussions on denuclearization, the White House said, but news of the summit’s early break-up triggered flight-to-quality bids in safe assets.
Riskier assets took a hit, with stocks across the board lower in Europe after the start of trading. The pan-European STOXX 600 index fell more than half a percent. [. EU]
That followed a retreat in Asian equities, which took a hit on a lack of progress on trade issues between China and the U. S. and data showing factory activity contracting to a three-year low in China. The Shanghai Composite Index fell 0.7 percent.
The data also showed export orders fell at their fastest pace since the global financial crisis, adding to worries about the nearly year-long trade dispute between China and the U. S.
U. S. issues with China are “too serious” to be resolved with promises from Beijing to purchase more U.
