Premarket: Stocks edge higher as Trump acts to ease China trade tensions

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Premarket: Stocks edge higher as Trump acts to ease China trade tensions GlobeInvestor

This translation has been automatically generated and has not been verified for accuracy.Stock markets clawed themselves off their lows on Monday but sentiment remained fragile after the latest flare-up in the U.S.-China trade war sent investors scrambling into government bonds and battered emerging market currencies.

European stock markets struggled to bounce to the same degree, with the pan-European Eurostoxx down marginally on the day. Germany’s DAX rose 0.29 per cent while France’s managed a 0.48 per cent rise. London’s markets were closed for a holiday. “Trump is clearly potentially exposed to a slower U.S. economy impacting his capability to be re-elected. He is aware of this and so reacts to market volatility with some kinder words,” said Chris Bailey, European strategist at Raymond James.

The price of gold, which has boomed in recent months as nervous investors flocked to the precious metal, touched its highest since April 2013 and was last up 0.3 per cent at $1,530. “Downside risks are increasing for both the global economy and markets,” said Mark Haefele, global chief investment officer at UBS. “As a result, we are reducing risk in our portfolios by moving to an underweight in equities to lower our exposure to political uncertainty.”German business sentiment deteriorated more than expected in August to hit its lowest since November 2012, a survey by Germany’s Ifo Institute showed on Monday.

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