FTSE 100 flat as European traders await next US-China trade move
European markets traded flat this morning, quietening down after several days of gains as investors waited for the next development in the US-China trade war.
The FTSE edged down slightly less than 0.1 per cent, while the Dax remained flat and the Cac edged up 0.2 per cent.
Read more: 15 minute daily walk could give world economy a $100bn boost
The lack of movement follows in the footsteps of Asian markets, which also stayed muted overnight amid reports of a possible hold-up in the talks between Beijing and Washington.
“The FTSE 100 seems stuck in a holding pattern amid radio silence on the next move in the US-China trade negotiations,” said AJ Bell investment director Russ Mould.
He added: “Having moved higher amid some optimism on this front early in the week, investors now seem to be awaiting solid news one way or another.
“It may hinge on whether the US is prepared to dial back some of the tariffs on Chinese goods.”
Neil Wilson, chief market analyst at Markets.com, said: “Equity markets stagnate and hunger for trade news, but the relief rally may have a tad further to run. One can’t help but feel the market is already pricing in all the good news, and ignoring the bad. (But then the Fed is back in the game, so it’s one way traffic.)”
Read more: Labour mulls climate change finance crackdown
Speculation of a truce between US and Chinese officials has mounted in recent days, with hopes that a “phase one” of a trade deal will be signed between the two sides.
“You can almost feel the enthusiasm drain away from the equity market. It is probably just some overtiredness, or disappointment at the lack of fresh trade war headlines, but stocks seem unable to keep moving higher,” said Chris Beauchamp, chief market analyst at IG.