Fear about US-China trade talks and dire German data push global stocks down

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Bloomberg reported on Thursday that the US wanted to set a 2025 target for China to meet trade pledges

Traders work at their desks while screens show market data at CMC Markets in London, Britain. Picture: REUTERS/HENRY NICHOLLS

MSCI’s broadest index of Asia shares also lost 0.4% overnight after five straight days of gains had taken it to the highest level since late August. Losses were led by Australia and New Zealand while Hong Kong, the Philippines and Indian markets were also in red. “We are expecting quite a constructive agreement between the US and China when it comes to trade,” said AllianceBernstein China Portfolio Manager John Lin. He added it was probably now a consensus view among major investors and if it proved right, would raise other questions such as whether China’s government would “keep its foot on the pedal or ease off a bit.”

Bloomberg reported on Thursday the US wanted to set a 2025 target for China to meet trade pledges. The plan would see China committing to buy more US commodities, including soybeans and energy products, and allow full foreign ownership for US companies operating in China as a binding pledge.Traders were also squaring off positions ahead of US jobs data due on Friday after earlier disappointments this week.

 

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