Stocks fall for third day as investors dial down trade hopes

LONDON: 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.

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. But USTR later clarified in a statement that it was not abandoning the threat of increasing the tariffs to 25 percent from 10 percent.

In currency markets, the dollar index against a basket of six major currencies fell 0.1 percent at 96.041. Sterling has rallied this week as investors ramped up bets that a no-deal Brexit was less likely and that Britain's departure from the European Union would be delayed.

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