LONDON: Geopolitical tensions, muted economic data and mixed earnings stymied global stocks and weighed on crude oil prices on Friday with sterling hovering just above one week lows amid a new bout of Brexit anxiety.
"We may have reached the bottom in the euro zone, but there is still uncertainty that is troublesome in the U.S. Many accounts will be waiting for the Fed," said Cyril Regnat, a fixed income strategist at Natixis, referring to next week's meeting of the U.S. central bank with markets pricing a 90per cent chance of a rate cut.
Trade talks are also back in focus with U.S. and Chinese trade officials due to discuss plans for China to buy more U.S. farm products while Beijing in return will request cancellation of some planned and existing U.S. tariffs on Chinese imports. A Reuters poll of economists showed that most think a steeper decline in global growth is more likely than a synchronised recovery, despite central bank easing.
Johnson conceded on Thursday for the first time that he would not meet his"do or die" deadline to leave the European Union next week.